Salient to Investors: Swings in US stocks are at the lowest level in 6 years, an indicator that has most often coincided with incumbent parties keeping the presidency in data going back to 1900. Daily changes in the Dow have trailed the 112-year average of 0.75 percent in 13 of 17 instances
READ MORE... →Salient to Investors: 70 percent of S&P 500 companies have beaten analysts’ estimates this quarter. Dow fluctuations this year are the smallest in an election year since 2004, and less than the 112-year average when the incumbents won (13 of 17) and lost (6 of 11). Volatility declines indicate less concern that prices will
READ MORE... →Salient to Investors: David Sowerby at Loomis Sayles said earnings continue to surprise on the upside, plus a slight improvement in manufacturing. 71 percent of S&P 500 companies beaten analysts’ quarterly estimates. Darrell Cronk at Wells Fargo Private Bank said the consumer is showing he is willing to jump back in and seek out a job. Thomas
READ MORE... →Salient to Investors: Graham Bishop at Exane BNP Paribas said equities will advance in 2013 as investors who missed this year’s gains try to chase the rally, driven by a reversal of investor pessimism, near-zero US interest rates, accelerating economic growth, and favorable market valuations. Bishop said this phase of the cycle supports a strong
READ MORE... →Salient to Investors: Warren Buffett said that book value is the best available proxy for intrinsic value. Meyer Shields at Stifel Nicolaus said book value is a number you can hold on to and a reasonable depiction of company worth. Tom Lewandowski at Edward Jones said it’s harder to move the needle when
READ MORE... →Salient to Investors: John Haynes at Investec Wealth & Investment said markets are fine where they are and people are underestimating the positive momentum that is building. Earnings have exceeded projections at 72 percent of companies that have released Q3 results, while sales have trailed estimates at 60 percent. Read the full article at
READ MORE... →Salient to Investors: The global economy grew at the slowest pace since the 2009 recession. China reported the seventh straight quarter of slowing growth. Services and manufacturing in the 17-nation euro area last month contracted more than economists forecast. John Stephenson at First Asset Investment Mgmt said Europe is a complete
READ MORE... →Salient to Investors: Pound-cost averaging incurs an opportunity-cost to be paid for holding money in cash while it waits to be invested in the market. A recent US Vanguard study over rolling 10-year periods from 1926-2011 found that, on average, lump-sum investing resulted in higher returns than pound-cost averaging about two-thirds
READ MORE... →Salient to Investors: Profit margins had their first 12-month contraction since 2009 leaving investors increasingly dependent on economic growth to boost stocks. Bears say stagnant profitability accompanied recessions in 2000 and 2007. Bulls say housing and employment data indicate an accelerating economy and valuations are low. Russ Koesterich at BlackRock said margins collapse when
READ MORE... →Salient to Investors: Jim Goff at Janus writes: Only invest money you won’t need for five to 10 years, set it and forget it. Australia has the best such plan with its mandatory retirement fund contributions of 9% of salary – assets now exceed Australian GDP and the Australian stock market. Bad headlines are the
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