Salient to Investors: Masaru Hamasaki at Toyota Asset Mgmt said: Investors expect further BOJ stimulus but are also losing hope that big enough steps will be taken. Japanese shares are outperforming versus overseas markets because the yen’s strengthening trend has eased. The 2 percent growth of US GDP was certainly good as the headline,
READ MORE... →Salient to Investors: From November 1957 to October 2007, the Best 6 Months strategy (sell in May and come back in November) gained 38 times, lost 12 times, for an average annual gain of 7% versus the worst 6 months of the year which lost 18 times for a less than 1% average annual
READ MORE... →Salient to Investors: Julian Robertson at Tiger Management said hedge funds positioned for a “disaster” are making a mistake – so bearish that they’re not going to get out of it without a black-swan type event. The Bloomberg Global Aggregate Hedge Fund Index is up 3.1 percent in 2012 through September versus
READ MORE... →Salient to Investors: History shows investors are more prone to sell “winning” investments but hold on to losers. Momentum trend-following strategies will lose some money, but probably not all of your money. Avoiding losses is the key advantage of momentum strategies. Kevin Orr at F-Squared Investments said: Avoid loss, even at the expense of
READ MORE... →Salient to Investors: Dale Roberts writes: Very few middle class investors will retire due to the money generated from their investment portfolio or their investment philosophy. The stock market is mostly long periods of losing money against inflation, punctuated by two rabid bull markets that led to extreme overvaluation. Regularly, US equity
READ MORE... →Salient to Investors: Barry Knapp at Barclays says no election has mattered more. Jeff Kleintop at LPL Financial says many industries are heavily influenced by legislation and regulation, so a change in policymakers can have a big impact. S&P Capital IQ says that since 1900, the stock market, economic growth and corporate earnings in
READ MORE... →Salient to Investors: Tom Wirth at Chemung Canal Trust said the earnings season has disappointed many, sales are disappointing. 70 percent of S&P 500 companies beat analysts’ estimates in Q3, 60 percent have missed sales forecasts. The S&P GSCI spot gauge of 24 raw materials erased gains for the year. Robert Shiller at Yale said
READ MORE... →Salient to Investors: The S&P 500 is up 14 percent in 2012, beating Treasuries, corporate bonds, commodities, the dollar and equities in Asia and Europe for the first time since 1995. The S&P 500 earnings yield is 6.9 percent versus 2.7 percent on investment-grade US corporate bonds – the spread of 4.2 percent compares
READ MORE... →Salient to Investors: Peter Jankovskis at Oakbrook Investments said many companies have beat earnings estimates but investors are watching their ability to grow revenue. 69 percent of S&P 500 companies beat Q3 analysts’ estimates, 59 percent missed sales forecasts. Caterpillar forecast sales growth for 2013 that is the slowest in four years. Freeport-McMoRan Copper &
READ MORE... →Salient to Investors: Investors have pulled $440 billion from U.S. equity mutual funds since 2008. E.E. Geduld at Cougar Trading says crashes happen when investors become convinced they’ve lost control – the volumes we can now handle are gigantic, but the exit door hasn’t changed in size. Timothy Ghriskey at Solaris Group said
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