Salient to Investors: Caroline Baum writes: Private foreign investors sold a net $67 billion of Treasuries in June, a record and the second consecutive monthly outflow, and sold agency securities, corporate bonds and equities. The US Treasury is looking at much higher borrowing costs as 41 percent of the debt has
READ MORE... →Salient to Investors: Zhao Danyang at Pureheart Capital Asia has more than 80 percent in Chinese stocks traded in Hong Kong, Singapore, the US and at home from 50 percent at the start of 2013. Pureheart has sold almost all of its Indian stock holdings and plans to further cut its Vietnam investments. Pureheart said Chinese
READ MORE... →Salient to Investors: Chris Bouffard at the Mutual Fund Store said the market is in a normal digestion process as people get comfortable with how quickly and how far we have come. Investors pulled almost $1.20 billion from US equity ETFs versus inflows of $32 billion in July, the most since
READ MORE... →Salient to Investors: Kim Shepherd at the Wilshire Trust Universe Comparison Service said institutional investors’ allocations to dollar-denominated bonds in Q2 were 26.2 percent of assets, the lowest level since 2007, and versus 32 percent of assets in Q4 2011. David Darst at Morgan Stanley is advising clients to cut bond allocations to
READ MORE... →Salient to Investors: DataQuick said home sales priced at over $1 million rose an average of 37 percent in half1, 2013 from a year earlier to the highest level since 2007, and versus 11 percent for houses priced under $1 million. Susan Wachter at Wharton said wealthy purchasers are diving into real estate a
READ MORE... →Salient to Investors: James A. Kostohryz writes: Stock valuations are currently within or even slightly above a broad range that could be considered “normal” and not at bubble levels, but unprecedented levels of excess liquidity, declining liquidity preference, and a number of fundamental, technical and psychological indicators strongly indicate a bubble is forming. Probabilities favor
READ MORE... →Salient to Investors: Takeshi Fujimaki said: A delay in increasing the sales tax and reduction of Fed stimulus could cause Japan’s government bond bubble to burst. Japan will not be able to avoid default and hyper-inflation with the tax increase, but that is no excuse not to go ahead with it. Japan’s fiscal
READ MORE... →Salient to Investors: Michael Vogelzang at Boston Advisors said the tone from central banks is that the economy is a little better but not yet at escape velocity without monetary support, and as long as there is strong accommodative policy, the market can go up a lot, driven by Fed
READ MORE... →Salient to Investors: Private-equity managers from Fortress Investment to Blackstone say now is the time to exit investments as stocks rally and interest rates start to rise. Wesley Edens at Fortress said he is preparing holdings for public offerings while struggling to find attractive new deals. Pete Briger at Fortress said the environment extends
READ MORE... →Salient to Investors: Money managers are betting that bond funds that are unconstrained by duration, strategy or region will attract money as interest rates rise and investors shift assets from traditional fixed-income offerings, which are limited in how they can react to falling bond markets. Unconstrained funds generally can increase in value
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