Salient to Investors: Mao Sheng at Huaxi Securities said investors are getting more confident about the economic data and stocks will be steadily rising for the rest of the year. Xu Gao at Everbright Securities said we are clearly seeing stronger external demand momentum as manufacturing in the US and
READ MORE... →Salient to Investors: Higher debt costs will reduce buybacks and dividend increases. Borrowing costs for S&P 500 companies fell to 1.4 percent of sales the last 12 months, a record low in 11 years of data. Corporate bond yields are increasing the most since 2009 and are at 4.3 percent
READ MORE... →Salient to Investors: Investors pulled $2.2 billion from Thailand, Indonesia and the Philippines in August, versus inflows of $6.8 billion in 2012. Wellian Wiranto at Barclays said Singapore is a barometer for Southeast Asia; choppiness elsewhere cause ripples in Singapore. Khiem Do at Baring Asset Mgmt said Singapore’s stock market benefited from loose
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said concern that a surge in US bond yields will curb US growth is overblown because higher borrowing costs coupled with gains in confidence are a healthy sign for the economy. Paulsen said confidence is at the center of everything here and that since 1967, stocks
READ MORE... →Salient to Investors: Zhao Danyang at Pureheart Capital Asia has more than 80 percent in Chinese stocks traded in Hong Kong, Singapore, the US and at home from 50 percent at the start of 2013. Pureheart has sold almost all of its Indian stock holdings and plans to further cut its Vietnam investments. Pureheart said Chinese
READ MORE... →Salient to Investors: The decline at Bridgewater Associates’ All Weather fund and similar funds shows allocating assets between stocks and bonds can leave investors overexposed to rising interest rates. Ramin Nakisa at UBS Investment Bank said June’s sell-off in Treasuries and inflation-linked bonds was just a dress rehearsal for the volatility awaiting
READ MORE... →Salient to Investors: David Kostin at Goldman Sachs said the S&P 500 will climb to 1,750 at year-end, to 1,825 in the next 12 months and 1900 at year-end 2014, as economic growth gains momentum, and recommends companies that generate most of their revenue domestically. Kostin said the real issue is that rising interest
READ MORE... →Salient to Investors: The Euro Stoxx 50 Index is at 12.5 times projected earnings, versus 15.3 times projected earnings for the S&P 500 and 14.2 times income for the Topix. Bulls say European stocks are cheap as the first expansion for euro-area manufacturing in 2 years helps drive forecasts for profit growth of more
READ MORE... →Salient to Investors: Chris Bouffard at the Mutual Fund Store said the market is in a normal digestion process as people get comfortable with how quickly and how far we have come. Investors pulled almost $1.20 billion from US equity ETFs versus inflows of $32 billion in July, the most since
READ MORE... →Salient to Investors: The S&P 500 is at 15.3 projected earnings, the highest in 3 years. 72 percent of the 449 S&P 500 companies so far reporting have beaten earnings estimates, 56 percent have beaten sales estimates. Rick Fier at Conifer Securities said earnings are pretty much done and tapering is on the way
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