Salient to Investors: David Stockman writes: The August CPI gives the Fed an excuse to keep shoveling free money into the casino. No Fed rate increase would be a clear indication of its fear of reining in Wall Street’s greedy and gamblers and that Keynesian central banking in the last two decades
READ MORE... →Salient to Investors: David Stockman writes: A growing chorus of investors blamed last week’s stock market sell-off on esoteric but increasingly influential trading strategies pioneered by hedge funds like Bridgewater. Hedge fund performance has benefited from broken capital markets rigged by the Fed. Thesecasino gamblers bought every one of the
READ MORE... →Salient to Investors: In a bear market poised to plunge again. Markets drop twice as fast as they rise because fear is a stronger emotion than greed. Bearish technicals: Broken down from the 6-year bearish Rising Wedge pattern. First bearish moving average cross for 4 years Volume on the recent plunge
READ MORE... →Salient to Investors: Many investors move money out of China in ways that circumvent its tough limits. China’s foreign-exchange reserves reached nearly $4 trillion in 2014 but have dropped by more than $341 billion since. CBRE estimates that Chinese investment in overseas commercial properties totaled $6.5 billion in half1 2015
READ MORE... →Salient to Investors: Even the wealthiest property investors are fleeing London’s best districts due to higher sales taxes of up to 12% on the amount above £1.5 million. Camilla Dell at Black Brick Property Solutions said clients are spending an average of £2 million less on each transaction this year and are
READ MORE... →Salient to Investors: Cargill, the world’s largest grain trader, shut its commodities hedge fund last month, a sign that commodity speculators are in trouble. Donald Steinbrugge at Agecroft Partners said hedge funds are supposed to make money in both bull and bear markets but managers bias towards rising prices. Steinbrugge
READ MORE... →Salient to Investors: Citigroup said pension funds bought 8% of the top-rated US CLOs, which slice high-yield loans into securities with varying risks , and 7% of the riskier mezzanine notes in Half1, 2015, versus minimal amounts a few years ago. Pension purchases accounting for 26% of new top-rated debt in
READ MORE... →Salient to Investors: The flow of funds into the Financial Select Sector SPDR ETF turned negative for the year following its biggest withdrawal last week since 2009. Its short position is the highest since June 2002 Todd Rosenbluth at S&P Capital IQ said investors should have less exposure to financials than
READ MORE... →Salient to Investors: Peter Hayes at Blackrock said nobody really expects rates to rally significantly from here and everybody is waiting for a pullback. Hayes said the muni market is overpriced and said sell into strength and wait for better opportunities. Munis have rallied in each of the first 9 months
READ MORE... →Salient to Investors: Eric Zoldan at JHS Capital Advisors said that over the last two weeks, it is much clearer that while money is flowing out of all asset classes, it is not flowing out of the gold market, and that deteriorating global growth and demand is leading investors back to gold.
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