Salient to Investors: Europe’s biggest real estate managers are making their first investments in southern Europe since the financial crisis as low prices and diminishing risk make commercial properties more attractive. Anne Kavanagh at Axa Real Estate Investment Managers said we are at or near the bottom and starting to see
READ MORE... →Salient to Investors: George Kesarios at capital.gr writes: Stocks will repeat 1999 and rise to one big bubble as a result of the fixed income exodus, and even if the US economy does not perform, unemployment remains at 7%, and corporate profits stall. Equities might feel the pinch when yields stabilize or yields
READ MORE... →Salient to Investors: Share prices for the 10 largest diversified emerging-market ETFs on average were 42.6 percent more volatile than their underlying indexes from May 22 to June 24, when Bernanke triggered the sell-off that sent emerging-market stocks to a 1-year low, while the 5 biggest emerging-market index mutual funds were
READ MORE... →Salient to Investors: Jankiel Santos at Banco Espirito Santo de Investimento said emerging markets will now have to compete for capital with the US, and countries that carried out the necessary adjustments will suffer less, while Brazil will suffer more. Ilan Goldfajn and Caio Megale at Itau expect the Brazil
READ MORE... →Salient to Investors: TrimTabs Investment Research and the Money Fund Report report bond funds saw $61.7 billion of withdrawals last week. Market bears say yields barely exceed inflation, leaving little relative value in bonds as the global economy improves. Pimco, BlackRock, and DoubleLine Capital say the worst is over because the
READ MORE... →Salient to Investors: Money managers reduced their net-long position in gold to the lowest since June 2007, while shorts climbed to the second-highest on record. ETP holdings are at a 3-year low. Banks from Goldman to Credit Suisse cut their gold forecasts last week. Mark Luschini at Janney Montgomery Scott said
READ MORE... →Salient to Investors: Alexander Friedman at UBS says: What Fed has done is not unexpected and the market reacted because it was ahead of itself. All the Fed was saying was that the US is doing OK, that the data is trending as it should, and that it has confidence
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. writes: Short stocks and commodities, go long the dollar and Treasuries – if stocks continue to decline, the safety of Treasuries and investment-grade bonds will outweigh concerns about the end of QE. World economies are growing slowly at
READ MORE... →Salient to Investors: Richard Stern at TrimTabs Investment Research said investors withdrew $52.8 billion from bond mutual funds and $8.9 billion from ETFs in June through June 24 . David Santschi at TrimTabs said before June, bond funds posted inflows for 21 consecutive months. Individual investors typically own bonds through mutual funds while
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Bond yields and risk spreads were too low 2 months ago and global markets that were too leveraged are now reducing risk The Fed tilted over-risked investors to one side of an overloaded and over-levered boat when discussing tapering, so don’t panic.
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