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: Goldman Sachs, Visa, and Nike will replace Bank of America, Hewlett-Packard, and Alcoa in the Dow Jones Industrial Average – the biggest reshuffling since April 2004 – boosting the influence of banking and computer companies. Dow proportions are determined by stock price and not market value, so
READ MORE... →Salient to Investors: Herbert Perus at Raiffeisen Capital Mgmt said sentiment has changed, Syria is not as big a problem as the possibility of a military strike seems low: markets can rise until the end of the year. Perus said international investors are more aware that European markets are not
READ MORE... →Salient to Investors: Uche Orji at Nigerian Sovereign Investment Authority said: Many asset classes are richly valued, including developed market equities. The DJIA has gained each year since 2009 and Europe is recovering, so equity values may rise further amid Fed tapering. Nobody knows what tapering is and nobody has
READ MORE... →Salient to Investors: Mao Sheng at Huaxi Securities said investors are getting more confident about the economic data and stocks will be steadily rising for the rest of the year. Xu Gao at Everbright Securities said we are clearly seeing stronger external demand momentum as manufacturing in the US and
READ MORE... →Salient to Investors: Greg Jackson at Jackson Park Capital looks for any size stocks of companies with: A shareholder-oriented management team, with CEOs owning stock in their companies. Strong insider buying and buying in the open market with cash that’s at least six figures in value, not acquiring shares through
READ MORE... →Salient to Investors: Michael Gurka at Spectrum Asset Mgmt says the market should be considerably lower. The first clue is market resistance at the 3% yield. Gurka sees a lot of overlaps with the 1987 crisis, while today’s jobs number does not make sense and shows what a tangled web we
READ MORE... →Salient to Investors: The 90-day correlation between changes in the euro and a Citigroup index of bond and swaps risk has turned positive for the first time since November 2008, indicating the euro is gaining favor as investors’ perceptions of turmoil in financial markets rises. Hedge funds et al are
READ MORE... →Salient to Investors: Higher debt costs will reduce buybacks and dividend increases. Borrowing costs for S&P 500 companies fell to 1.4 percent of sales the last 12 months, a record low in 11 years of data. Corporate bond yields are increasing the most since 2009 and are at 4.3 percent
READ MORE... →Salient to Investors: Steve Ashley at Nomura said: The worst is over for Asian emerging markets but individual countries could continue to suffer significant challenges. It is very positive for the next 5 to 10 years as the amount of investments by funds in these countries catch up with the
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