Salient to Investors: Pundits calling for a huge decline in equities are either the absolutely certain types, who have stuck to their prediction for years, and the less media-savvy academics and heads of research at big investment firms who see a decline but after the market goes higher. The last
READ MORE... →Salient to Investors: Flows into emerging-market ETFs have turned positive for the year, reversing outflows in the first 2 1/2 months of 2014. The most inflows in 2014 have gone to India-focused ETFs. Investors have withdrawn $1.5 billion from China-targeted ETPs over concern over economic imbalances there. The RSI of the BlackRock ETF
READ MORE... →Salient to Investors: Jeremy Grantham at GMO advises: You don’t know how the important people in your life will behave under pressure. Local cultural differences can be very lasting. Even great ideas can fail. Investing is serious and should not be driven by excitement, as it is for many individual
READ MORE... →Salient to Investors: A Bernstein Research study “Do High R&D Spenders in Tech Generate Stock Outperformance?” found: Over 1, 3, 5, and 10-year periods, the companies with the lowest spending on R&D tended to perform the best on Wall Street. Over the past 5 years, stocks in the biggest R&D
READ MORE... →Salient to Investors: Barry Ritholtz writes: The market’s various new highs are bullish. Corrections are normal so should not be feared: since March 2009, we have had 9 corrections from 6-22 percent. Corrections are impossible to forecast because people are terrible at making predictions and we don’t know what the
READ MORE... →Salient to Investors: Robert Battalio at Notre Dame said: Dark pools have existed forever: shut them down and new forms will arise elsewhere because money managers are too fond of them. Order flow will always have multiple venues to execute on because one size does not fit all. Brokers favor
READ MORE... →Salient to Investors: Cass Sunstein at Harvard said: Economists know that if you invest in stocks, it makes sense to invest in a passively managed diversified portfolio of largely low-cost index funds, weighted toward equities, and add money as you get it – diversifying it as well – and keep
READ MORE... →Salient to Investors: Corporate activists including Carl Icahn, Bill Ackman and Nelson Peltz targeted 81 US companies with market values exceeding $1 billion between 1/2009 and 12/31/2013, generating a 48% average gain for long-term investors versus 31% for the S&P 500. Read the full article at http://www.bloomberg.com/infographics/2014-03-31/activists-beat-s-p-500-in-48-percent-gain-for-shareholders.html Click here to receive free and
READ MORE... →Salient to Investors: Shares of high-dividend-yielding companies are trading near the lowest level in almost 3 years relative to the market. Jack Ablin at BMO Private Bank said the favorable investment backdrop of low interest rates is reversing and if the US economy stays on its current path, 10-yr Treasury
READ MORE... →Salient to Investors: Convicted felon Sam Antar says stock-picking sets you up as a mark for the unscrupulous because investors live on hope and it is the criminal’s job to take advantage of that hope. Antar said criminals are as short-sighted, if not more so, as the rest of us –
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