Salient to Investors: David Kelly at JPMorgan Funds said the Fed looks justified in continuing to taper given economic momentum and recent sharp declines in the unemployment rate. Kelly said assuming the volatility in emerging markets subsides, this economic report should bolster the case for both higher interest rates and
READ MORE... →Salient to Investors: Joseph Pacini at BlackRock said: Asian institutions’ appetite for regional real estate investments has returned as they hunt for yield for their growing assets amid low interest rates and are expected to deploy more money and a bigger percentage of their property allocations to Asia, especially in
READ MORE... →Salient to Investors: Outside buyers invested $125 billion in Japanese stocks in 2013 through November, passing the previous highest total in 2005, which preceded a 1.9 percent increase for the Topix in 2006. November net purchases were the highest since April. Wayne Bowers at Northern Trust said Abe’s policies will
READ MORE... →Salient to Investors: Bank of America Merrill Lynch index data show the extra yield investors demand to own corporates instead of similar-maturity Treasuries has narrowed 31 basis points this year to 200 basis points, the lowest since October 2007. ICI data shows fund managers favoring corporate debt over government-backed securities
READ MORE... →Salient to Investors: Investors cut holdings in gold ETPs every month this year, erasing $69.4 billion. Hedge funds et al are the least-bullish since June 2007. John Paulson told clients last month that he personally would not invest more money in his gold fund. Goldman Sachs forecast prices will drop
READ MORE... →Salient to Investors: Individuals pulled $52 billion from muni-funds in the first 11 months of 2013, the most since at least 1992 when data began – outflows through year-end would extend the worst losses in the muni market since 2008. Jamie Pagliocco at Fidelity Investments and Chris Alwine at Vanguard
READ MORE... →Salient to Investors: Joseph Baratta at Blackstone said: The stock market rally may last 2 more years with compound annual growth of 8% to 10%, as long as the Fed provides support. Equity markets are not overvalued when measured by the prices buyout firms are paying for companies. US economic
READ MORE... →Salient to Investors: Hedge funds returned 7.1 percent in 2013 through November versus the 29.1 percent return of the S&P 500 Index, with reinvested dividends, and are headed for their worst annual performance relative to US stocks since at least 2005 and underperforming for the fifth year in a row.
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: Hedge funds et al pushed wagers that bet the yen will fall versus the dollar to the highest since July 2007, versus the median of over 50 analysts who see the yen as flat through Q1, 2014. Brad Bechtel at Faros Trading said everybody likes dollar-yen higher.
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