Salient to Investors: Yields on US Treasuries, German bunds and Japanese government bonds are 1 standard deviation above their historical norm. Yields on Treasuries and bunds are more than 40 basis points below what would be 2 standard deviations from their means, and Japanese bonds are 5 basis points away.
READ MORE... →Salient to Investors: John Lynch at Wells Fargo Private Bank said ISM was decidedly negative, and bad news can only be good news for so long for stock prices – at some point it will impact earnings and market levels. Sam Stovall at S&P said the rally and strong start to
READ MORE... →Salient to Investors: Jeffrey Hirsch at the Stock Trader’s Almanac writes: Three main seasonal and cyclical patterns have stood the test of time: the 4-year Presidential Election/Stock Market Cycle, the Best 6 Months Switching Strategy and January’s basket of indicators and trading strategies. Caveat. History never repeats itself exactly. 1.
READ MORE... →Salient to Investors: Bob Rice at Tangent Capital writes: Despite negative headlines, sophisticated institutions keep adding to their $2 trillion invested in hedge funds. Benjamin Graham devised a way to make money regardless of market direction by buying a stock he liked, and simultaneously selling short one he didn’t. Over the
READ MORE... →Salient to Investors: Joseph Tanious at JPMorgan Funds said everyone is trying to figure the Fed – strong data reinforces the Fed message of the past few weeks and justifies the tapering of QE, while weak data makes people think the Fed is going continue QE a bit longer, with
READ MORE... →Salient to Investors: US balanced funds received record inflows of $35.2 billion from January to April, the most in any four months, showing easing individuals’ reluctance to join the record-breaking rally in the S&P 500 Index. Inflows into hybrid funds reached records in February 1994 in the middle of a 417 percent gain
READ MORE... →Salient to Investors: 12 analysts expect gold prices to rise next week, 9 fall and 8 neutral, the highest proportion of bulls since April 26. Wolfgang Wrzesniok-Rossbach at Degussa Goldhandel said gold purchases outpaced sales by 9 to 1 versus 4 to 1 in Q1. Daniel Briesemann at Commerzbank said gold should
READ MORE... →Salient to Investors: Bruce Stout at Aberdeen Asset Mgmt says: Optimism is too high for stocks and bond yields are too low His fund’s fixed-income holdings are at the lowest level in 25 years. The main problem is trying to get yield in a world where there is no yield, but
READ MORE... →Salient to Investors: Cyril Castelli at Rcube SAS says the decline is just a correction presents a buying opportunity: valuations are attractive, it is a much better liquidity environment and there is potentially a large run-up in euro-zone equities. The Stoxx 600 is at 13.6 times estimated earnings, the highest since January
READ MORE... →Salient to Investors: Mark Matthews at Bank Julius Baer said the bull market will resume because of compelling fundamentals. Eisuke Sakakibara said Japanese equities had risen too much, too fast, especially financial stocks, and needed a correction before resuming their climb. J. Kyle Bass at Hayman Advisors said selling from JGB investors has overwhelmed
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