Salient to Investors: Jay Peloski at Itau said global equity market leadership is shifting from the US to the non-US developed markets. Guillermo Felices at Barclays said European and Japanese equities have more room for earnings improvement. Based on forward estimates, earnings growth in Europe is 46%, in Japan is
READ MORE... →Salient to Investors: The Nippon Individual Savings Account program opens for applications tomorrow and will allow individuals to buy $10,143 a year of risk assets – stocks, ETFs and investment trusts – that are exempt from taxes on dividends and capital gains for 5 years. Nomura Research Institute estimates the
READ MORE... →Salient to Investors: A Bloomberg poll of investors, analysts and traders showed: 40% see the euro-area economy as improving, more than 4 times the number in May 40% see the world economy as strengthening, the most since January 2011. 52% expect stocks to produce the best return over the next
READ MORE... →Salient to Investors: Stanley Druckenmiller said: The poverty rate for seniors over the last 35 years has dropped from 35% to 9%, while their wealth has dramatically increased The numbers of seniors is about to explode and there is no way we can pay for what we have promised them. The US
READ MORE... →Salient to Investors: The Euro Stoxx 50 Index is at 12.5 times projected earnings, versus 15.3 times projected earnings for the S&P 500 and 14.2 times income for the Topix. Bulls say European stocks are cheap as the first expansion for euro-area manufacturing in 2 years helps drive forecasts for profit growth of more
READ MORE... →Salient to Investors: Gary Shilling writes: The fog remains thick, so reducing long positions in Treasury bonds and Japanese stocks and cut yen shorts, euro shorts and dollar long positions. Maintaining long positions in US defensive stocks like utilities and health care. Increased short position in junk bonds and initiated
READ MORE... →Salient to Investors: Takahiro Nakano at Mizuho Trust & Banking said Japanese stocks are falling amid risk aversion rather than going up on a weaker yen, and equities will have to rely on the drop in the yen after expectations about Japan’s growth strategy receded. Yutaka Miura at Mizuho Securities said low volume amplifies
READ MORE... →Salient to Investors: Japan’s GPIF will reduce its holdings of Japanese bonds to 60 percent from 67 percent, increase local shares to 12 percent from 11 percent, increase foreign bonds to 11 percent from 8 percent, and increase overseas shares to 12 percent from 9 percent. Makoto Suzuki at Okasan Securities said the
READ MORE... →Salient to Investors: Max Gottschalk at Gottex Fund Mgmt said: His largest Asia fund’s bets on small Japanese companies have been cut and the fund now allocates 2/3 of its Japan investments with managers that focus on large companies. A big part of the rally in Japanese equities has been in small
READ MORE... →Salient to Investors: Marc Faber at the Gloom Boom & Doom Report says: High-end assets from stocks to art to real estate are in a bubble caused by central bank money-printing. This money doesn’t increase economic activity and asset prices in concert, instead creates dangerous excesses in countries and asset
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