Salient to Investors: Resistance to hiring will help push S&P 500 Index profit margins above 10 percent next year, the highest ever. The 5-year rally has restored $14 trillion to share prices, yet US payrolls remain 1.5 million below the level in 2008. Michael Holland at Holland & Co said
READ MORE... →Salient to Investors: Bill O’Neill at UBS Wealth Mgmt said the story is still the combination of easy money policies and expectations of growth into 2014 and that growth is on the horizon. The Investment Companies Institute reports individual investors gave $30 billion to managers in 2013, the first net
READ MORE... →Salient to Investors: David Stockman said: QE is brewing asset bubbles around the world, exporting its lunatic policy worldwide Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated
READ MORE... →Salient to Investors: David Kostin at Goldman Sachs said: The S&P 500 will fall 10 percent in the next 12 months before rebounding to end 2014 at 1,900, end 2015 at 2,100 and end 2016 at 2,200. The overall market should rise because the US economy will be getting better.
READ MORE... →Salient to Investors: Ken Fisher at Fisher Investments said: Ending QE would be the most bullish thing we can do because it is not a stimulus – it flattens the yield curve and slows things down. We are doing well despite QE, not because of it. Historically, a steeper yield
READ MORE... →Salient to Investors: Jeremy Grantham at GMO said: The US market, especially riskier shares, could rise another 20 percent to 30 percent in the next year or two, along with the rest of the world, including emerging-markets, followed by a serious market bust. The S&P 500 is 40 percent overvalued.
READ MORE... →Salient to Investors: Jeremy Grantham at BMO writes: The Greenspan-Bernanke policy of excessive stimulus, now administered by Yellen, will continue, and that the path of least resistance, for the market is up. It would take a severe economic shock to outweigh the effect of the Fed’s relentless pumping of the
READ MORE... →Salient to Investors: Chad Morganlander at Stifel Nicolaus said the market is fairly valued at best and will require an improving economic and earnings outlook well above where we stand. S&P say the S&P 500 has not fallen more than 10 percent since October 2011, the longest stretch without such
READ MORE... →Salient to Investors: Bill Mann at Motley Fool Asset Mgmt said the Fed has decided to reward risk behavior and that is what we will get, so the market will keep hitting new highs until the stimulus reverses itself. Jan Hatzius at Goldman Sachs said the Fed will considerably increase
READ MORE... →Salient to Investors: Nobel Laureate Harry Markowitz said: Booms and busts happen and every time is different in terms of the fundamental causes. 2008 didn’t change the historical probability distribution of returns. 2008 was not an outlier event but a one-in-40 event and was not the worst year of return.
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