Salient to Investors: Ben Inker writes: Capitalism should cause the return on capital to be in line with the cost of capital, and assets with similar risks should offer similar long-term returns. Equities should trade at replacement cost, and the long-term return to equities should be approximately the same as
READ MORE... →Salient to Investors: Mark Hulbert writes: Avoid mutual funds whose recent performance has begun to slip, no matter how good their performance might have been in previous years. Favor funds with stellar recent returns, even if their longer-term performance is dismal. No Load Fund X is the best performing stock-mutual-fund
READ MORE... →Salient to Investors: 73 percent of the 237 S&P 500 index members so far reporting have beaten earnings estimates, 56 percent missed on revenue estimates. 24 of 40 economists expect the ECB to cut its benchmark interest rate by 0.25 percent to 0.5 percent next week. Greg Woodard at Manning & Napier said the market is looking
READ MORE... →Salient to Investors: Tomomi Yamashita at Shinkin Asset Mgmt said earnings overall are not bad, but some share prices got way ahead of themselves triggering profit taking, while tech is a hard spot and needs to do more capital investment but are waiting for an improvement in the economy. The Topix
READ MORE... →Salient to Investors: Michael Purves at Weeden said the markets are starting to process softening economic news and a correction. 72 percent of the 111 S&P 500 companies so far reporting have beaten earnings estimates. Thomas Nyheim at Christiana Trust said housing is showing modest improvement. William C. Dudley at
READ MORE... →Salient to Investors: American companies are the 5 biggest in the world for the first time since the end of 2004 – Exxon , Apple, Google, Berkshire Hathaway, and Wal-Mart . PetroChina, which was one of 3 Chinese stocks in the top 5 last year, has slipped to No. 6. 26 of the world’s
READ MORE... →Salient to Investors: Adam Nash at Wealthfront writes: Author Edward Chancellor found bubbles contain two ingredients, uncertainty and leverage. In almost every bubble, some form of innovation or insight forces people to rapidly debate the creation of new economic value. typically compounded by a lottery effect, exacerbating early pay-offs for
READ MORE... →Salient to Investors: Kenji Shiomura at Daiwa Securities said US housing starts are welcome after several disappointing economic reports, and today’s market advance is bigger than expected and investors on the sidelines are definitely looking to buy on dips. Ichiro Yamada at Fukoku Mutual Life Insurance said expectations for BOJ
READ MORE... →Salient to Investors: Witold Bahrke at PFA Pension A/S said overall market sentiment is still driven by two forces: disappointing macro data and abundant liquidity – last week, liquidity won, this week, disappointing macro data seems to be the winner. The VIX moves in the opposite direction to the S&P 500 about 80
READ MORE... →Salient to Investors: Capitulating bears and overseas buyers are drowning out every other concern for American stocks. Bulls say U.S. shares are becoming less vulnerable to global shocks and will keep rallying as skepticism eases among professional investors. Bears say indiscriminate buying shows the rally is in its last stages
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