Salient to Investors: Disruptions to the economy prompted speculation the Fed would maintain the pace of its $85 billion in monthly bond purchases. BlackRock Inc. and Pacific Investment Management Co. say the Fed will postpone tapering as a result of the debt-ceiling debate. Russ Koesterich at BlackRock said the disruption
READ MORE... →Salient to Investors: Since 1976, the S&P 500 has risen 11 percent on average in the 12 months following a government shutdown versus an average return of 9 percent over 12 months. There have been 17 shutdowns since 1976, with 5 occurring within 3 months of each other – in
READ MORE... →Salient to Investors: The S&P 500 Index return in 2013 is tracking day-to-day price moves in 1954 almost identically – a correlation coefficient of 0.95. In 1954 the S&P 500 rose a record 45 percent to reach a new high for the first time since 1929. Jim Paulsen at Wells
READ MORE... →Salient to Investors: fast cash loans with bad credit Karl Denninger writes: The pattern is nearly identical to that at the beginning of 2008. Debt continues to rise, and the biggest growth area remains the federal government. The sharp change in debt and GDP over the last few quarters is identical to
READ MORE... →Salient to Investors: The Templeton Frontier Markets Fund closed its fund to new money, as record cash inflows turned frontier markets into the world’s best performers in 2013 – the MSCI Frontier Markets Index is up 13 percent in 2013 versus a 4.6 percent drop in the MSCI Emerging Markets Index.
READ MORE... →Salient to Investors: EPFR Global data showed global equity funds attracted the largest inflows since at least 2005 last week. Wellian Wiranto at Barclays expects further inflows given that appetite has stabilized quite significantly and tapering was postponed, while it is s hard to see tapering in October. Wiranto said
READ MORE... →Salient to Investors: Tim Hartzell at Sequent Asset Mgmt said the underlying data may turn weaker despite 5 years of easy money, and stocks are dependent on this monetary stimulus. Economists predict the US will expand 1.6 percent in 2013 and 2.7 percent in 2014. 24 of 41 economists expect
READ MORE... →Salient to Investors: Jim Reid et al at Deutsche Bank said: Returns on 10-yr Treasury notes adjusted for inflation were an annualized 4.5 percent in the 100 years before the Fed and under 2 percent in the 100 years after the Fed was born in 1913, while the return on
READ MORE... →Salient to Investors: The MSCI Emerging Markets Index RSI touched 70, the level that signals a security is poised to decline. The last time it touched 70, on January 14, 2013, was followed by an 18% drop in 5 months. The Index breached its upper Bollinger band on Sept. 10,
READ MORE... →Salient to Investors: Goldman Sachs, Visa, and Nike will replace Bank of America, Hewlett-Packard, and Alcoa in the Dow Jones Industrial Average – the biggest reshuffling since April 2004 – boosting the influence of banking and computer companies. Dow proportions are determined by stock price and not market value, so
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