Salient to Investors: Jim Rogers said: Fed policy is incompetent and the Federal Reserve should be eliminated. The world has survived just fine without central banks for most of its history, America has had 3 central banks – the first two disappeared – and this one will self-destruct because it
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: The Fed’s determination to taper puts more risk in risk assets, such as stocks. The safety margin built into risk assets is much less now. The Fed is wary of upsetting financial markets, as it sees financial market strength as a key
READ MORE... →Salient to Investors: David Stockman said: QE is brewing asset bubbles around the world, exporting its lunatic policy worldwide Central banks all over the world have been massively expanding their balance sheets, and as a result of that there are bubbles in everything in the world, asset values are exaggerated
READ MORE... →Salient to Investors: Alan Greenspan said: The US economy will grow closer to 2 percent in 2014 as it is restrained by a degree of uncertainty that is reducing investment, below the median economist estimate of 2.6 percent. The US stock market is not in a bubble. The economy is
READ MORE... →Salient to Investors: Richard Koo at Nomura said: Mini-bubbles can occur during a balance sheet recession, like this one. Not yet seeing a big bubble, but concerned about mini bubbles. In a monetary policy-driven market, money created by an accommodative central bank typically spreads throughout the economy and lifts markets. During
READ MORE... →Salient to Investors: David Kostin at Goldman Sachs said: The S&P 500 will fall 10 percent in the next 12 months before rebounding to end 2014 at 1,900, end 2015 at 2,100 and end 2016 at 2,200. The overall market should rise because the US economy will be getting better.
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: The global economy will expand 2.75 percent to 3.25 percent in 2014. The big question is less the next 12 months and more what comes after, given we are being sustained by experimental, untested policies. The US and Japan have outperformed other
READ MORE... →Salient to Investors: Ken Fisher at Fisher Investments said: Ending QE would be the most bullish thing we can do because it is not a stimulus – it flattens the yield curve and slows things down. We are doing well despite QE, not because of it. Historically, a steeper yield
READ MORE... →Salient to Investors: Tony Hsu at the Dalton Greater China Fund focuses on entrepreneur-led companies and against state-controlled enterprises. Hsu likes Hong Kong-listed property developers with prime assets in the largest Chinese cities yet trading at large discounts to their NAV, because first-tier cities will be major beneficiaries of the
READ MORE... →Salient to Investors: Jeremy Grantham at GMO said: The US market, especially riskier shares, could rise another 20 percent to 30 percent in the next year or two, along with the rest of the world, including emerging-markets, followed by a serious market bust. The S&P 500 is 40 percent overvalued.
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