Salient to Investors: The days of instant rewards from the stock market are over. Larry Fink at Blackrock says be 100% in equities, prefers stocks to bonds. Bill Gross at Pimco says the cult of equities is dead but sees stocks offering double the nominal return of bonds over the next several
READ MORE... →Salient to Investors: The social security system will be still be able to pay at least 70% of benefits in coming decades, even if no action is taken. John Bogle at Vanguard says Social Security should be considered as part of a bond allocation, meaning a person could allocate a greater portion of
READ MORE... →Salient to Investors: Retail accounts for almost half of the 20 biggest fortunes in the world. Read the full article at http://www.bloomberg.com/news/2012-10-18/hidden-european-fashion-billionaires-undressed-on-china.html
READ MORE... →Salient to Investors: A fund is highly correlated to its benchmark index if its R-squared reaches 90: at 95, it is considered a ”closet” index fund. The steady rise in correlations among all stocks is making it more difficult than ever for actively managed funds to differentiate themselves from their benchmarks. Morningstar
READ MORE... →Salient to Investors: Investors will soon be more concerned about missing out on the rising markets than preparing for the next leg of the bear market. Gold will make a serious run at $2,000. Short-selling is a great strategy but risks mandatory buy-ins. Read the full article at http://seekingalpha.com/article/890301-how-to-prepare-for-the-bear?source=intbrokers_regular
READ MORE... →Salient to Investors: Equity markets will trend higher even if economic activity continues slow for a prolonged period. Any market correction over 10% is a buying opportunity. Asset markets are critical in the current environment and markets will not crash or collapse for the foreseeable future. The banking system has been flooded with enough
READ MORE... →Salient to Investors: Germany advanced legislation that would force high-speed trading firms to register with the government and limit their ability to rapidly place and cancel orders. The European Commission agreed on even broader rules for all of the EU if governments also give their approval. Celent estimates high-speed trading accounts for 30
READ MORE... →Salient to Investors: Scheme aimed at distorting stock prices by rapidly canceling orders – placing orders with no intention of having it executed. The trades primarily involved traders in China. Read the full article at http://www.bloomberg.com/news/2012-09-25/sec-says-new-york-broker-allowed-high-speed-stock-manipulation.html
READ MORE... →Salient to Investors: Morningstar reported that investors withdrew $300 billion net from actively managed U.S. equity stock funds in the 3-yr period through July 31, while buying a net $140 billion of passively managed funds and ETFs, and bond funds took in $734 billion. $3 trillion-plus is invested in equity mutual funds and ETFs.
READ MORE... →Salient to Investors: A Consumer Federation of America and Primerica study says middle-income Americans roll the dice when making financial decisions, leading to expensive financial mistakes. 67% of people with household annual income between $30,000 and $100,000 have made at least one really bad financial decision, costing them an average $23,000. But only
READ MORE... →