Salient to Investors: Main Street Investor Survey reports that advisers rank second only to independent auditors of public companies on investors’ trust scale, ahead of financial analysts, journalists, credit ratings agencies, corporate leaders and government regulators. Douglas Elliott at The Brookings Institution said investors are now used to 2% annual growth.
READ MORE... →Salient to Investors: Rich investors make portfolio decisions typically that are better-informed and with sufficient diversification to ride out rough markets. Blending a small amount of exotic holdings with traditional core holdings of stocks, bonds and cash lowers overall volatility. King Lip at Baker Ave says capital preservation is the key – stay diversified, protect
READ MORE... →Salient to Investors: Jeffrey Gundlach at DoubleLine Capital said: Equities won’t repeat the poor performance of 2000 to 2010, when the S&P 500 fell 14 percent. Equities are superior to fixed-income as an inflation hedge. Stocks’ unpopularity is positive. The S&P 500 isn’t cheap – the Chinese stock market is better value. Mutual-fund investors withdrew $313 billion from U.S.
READ MORE... →Salient to Investors: Tom Russo at Gardner Russo & Gardner said Berkshire’s Intel trade reflects a more traditional style of value investing – buy attractively priced stocks and sell once they hit a target. Warren Buffett believes that holding large positions in first-class businesses over the long term generates better returns than bonds, gold and other assets often deemed safe. Read
READ MORE... →Salient to Investors: The S&P 500 is not a measure of the American economy and U.S. stocks because it is global due to the multinationals included in the index. The S&P 500 is not broadly diversified because it is market cap-weighted. Tech is 20 percent, Apple near 5% , Exxon Mobil near 3%. An S&P indexed fund is not
READ MORE... →Salient to Investors: Profits are moving U.S. equity prices more than any time since the bull market began 3 1/2 years ago. Bloomberg data show: S&P 500 companies rose or fell an average of 4.4 percent the day after releasing results since July. Daily swings in the index narrowed to 0.4
READ MORE... →Salient to Investors: The value of transactions in S&P 500 Index ETFs is about to exceed the turnover for all of the index stocks for the first time. Bears claim the increase in ETFs shows investors are giving up on picking stocks; bulls claim it shows that individuals and institutions still want to own equities
READ MORE... →Salient to Investors: High-frequency trading accounts for more than half of equity trading volume. Read the full article at http://www.bloomberg.com/news/2012-06-22/wash-trading-by-high-frequency-firms-said-to-face-u-s-scrutiny.html
READ MORE... →Salient to Investors: Derivatives trading and poker share risk management and making decisions when uncertain. The most important skill is to analysing the situation. Realize the difference between pressure and stress. Watch the video at http://www.bloomberg.com/video/94782773-the-psychology-of-risk-trading-and-poker.html
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