Salient to Investors: David Kelly at J.P. Morgan Funds recommends a balanced portfolio because most investors are very conservative, bonds are expensive, and stocks are cheap. Kelly said: Valuations are extreme, which only makes sense if you believe we are on the brink of a financial disaster. All we have to do is
READ MORE... →Salient to Investors: A record number of investors bet on the “Sell In May and Go Away” adage this year, but so far year the indexes are up. Since 1896, this six-month period has done at least just over half the time as well as it has this year so far. October historically has
READ MORE... →Salient to Investors: Bespoke report that the Dow has risen an average 1.8 percent over the last twenty Octobers, with positive returns 70 percent of the time. Read the full article at http://www.bloomberg.com/news/2012-09-28/u-s-stock-futures-are-little-changed-home-depot-rises.html
READ MORE... →Salient to Investors: Equity markets will trend higher even if economic activity continues slow for a prolonged period. Any market correction over 10% is a buying opportunity. Asset markets are critical in the current environment and markets will not crash or collapse for the foreseeable future. The banking system has been flooded with enough
READ MORE... →Salient to Investors: Goya Nakao at Sompo Japan Nipponkoa Asset Mgmt said monetary easing won’t create demand, and catalysts for a market rebound are missing – there’s some improvement in sentiment in Europe, the U.S. economy is weakening, and the timing of a rebound in China is being pushed back. The
READ MORE... →Salient to Investors: Daisuke Uno at Sumitomo Mitsui Financial said the charts predict a fall in the euro to a 12-year low against the yen next month. On the weekly ichimoku chart, the conversion line remains below the base line; the spot price is below the cloud; and the lag line is below the spot prices. Ichimoku charts predict
READ MORE... →Salient to Investors: Nate Silver at FiveThirtyEight.com says to improve our ability to forecast, avoid overconfidence and become Bayesians Burton Makiel said earnings multiples were elevated in the early 1990s yet the 1990s produced extraordinarily generous equity returns. Earnings multiples were even higher in December 1996 yet the stock market rallied
READ MORE... →Salient to Investors: Charles Elson and Craig Ferrere at the University of Delaware say CEOs can’t readily transfer their skills from one company to another, debunking the “pay ’em or lose ’em” defense. They say the idea that companies must constantly compare their executives’ compensation with that of similar companies is bogus. They find little
READ MORE... →Salient to Investors: Brazilian small-caps are at 1.59 times book versus 3-yr low of 1.33 in June and the highest versus the Bovespa since February 2009. Consumer stocks account for 30 percent of the small-cap index, almost three times as much as their share in the Bovespa, where commodities producers account for 43 percent. Herculano
READ MORE... →Salient to Investors: Peter Elston at Aberdeen Asset Mgmt said is very concerned about the near-term global economy, sees significant weakness around the corner which will have a big impact on corporates and markets. The MSCI Asia Pacific index is 12.8 times estimated earnings versus 14.1 for the S&P 500 and 12.1 for the Stoxx Europe 600
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