Salient to Investors: Adam Posen said given the jump in Japanese stocks and slide in the yen in anticipation of greater stimulus, any failure to move in April risks disappointing investors. Masaaki Kanno at JPMorgan Chase said the party has just started, and predicts the BOJ’s open-ended bond purchases will be
READ MORE... →Salient to Investors: Jeremy Grantham at Grantham Mayo Van Otterloo said: All global asset prices are too high because of Federal expansive monetary policy. US companies, other than quality stocks with stable earnings and low debt, and most global growth equities, are brutally overpriced. US large-caps, excluding quality stocks, will lose
READ MORE... →Salient to Investors: Correlation between the Euro Stoxx 50 Index and the MSCI All-Country World Index has fallen to the lowest level since 2008. The Euro Stoxx 50 trades at 10.9 times estimated earnings versus 13.7 for the S&P 500 and 14.8 for the MSCI Asia Pacific Index. Trevor Greetham at Fidelity Worldwide is underweight
READ MORE... →Salient to Investors: Adrian Mowat at JPMorgan said emerging-market stocks may enter a significant correction because fundamentals and technicals are weakening – investors should use options that protect against stock losses and sell equities that are most sensitive to market swings. Mowat sees no near-term changes to these conditions and expects emerging markets to
READ MORE... →Salient to Investors: The assets of Michael Steinhardt’s WisdomTree Investments’ Japan Hedged Equity Fund have tripled since the start of 2013. The rapid growth of the fund highlights investors’ embrace of ETFs as vehicles for short-term trades in a way traditional mutual funds, with their higher fees and trading restrictions, haven’t been used. IndexUniverse
READ MORE... →Salient to Investors: George Soros made almost $1 billion since November from bets that the yen would tumble. Scott Bessent at Soros Fund Mgmt has 10 percent of the firm’s internally managed portfolio betting on rising shares in Japan. Read the full article at http://www.bloomberg.com/news/2013-02-14/soros-said-to-make-1-billion-since-november-on-yen-bet.html Free email alerts of articles as soon
READ MORE... →Salient to Investors: Bloomberg survey of global investors: 38 percent, the highest, expect the US to be in the top two markets over the next year, followed by China. 53% say equities offer the highest return in the next year, the most since the poll began in July 2009. Nearly
READ MORE... →Salient to Investors: Doug Short at Advisor Perspectives writes: Statistics says that 99.7% of all daily movements should fall within three standard deviations of the mean, but Deutsche Bank research shows that three standard deviation movements are not as rare – some instances, like the 2008 financial collapse, happen over 25% of
READ MORE... →Salient to Investors: Hiroyuki Ito at Goldman Sachs is bullish on Japanese stocks in 2013 due to the end of the yen strength that has hurt Japanese industry: likes Japanese machinery and electronics exporters, financial firms and electricity producers. Ito said Japan finally has a catalyst for the stock market to rise as the new
READ MORE... →Salient to Investors: The Nikkei 225 is poised to gain 23 percent in 2012, its biggest annual gain since 2005, while the Topix is headed for an 18 percent increase. The Topix trades at book value versus 2.1 times book for the S&P 500. Juichi Wako at Nomura says we’ve entered a positive cycle
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