Salient to Investors: Credit Suisse cut reduced its allocation to stocks to neutral from overweight. Michael Strobaek at Credit Suisse said the fundamental environment remains attractive, but the markets are overbought, and the positive economic outlook and further supportive monetary policy are largely priced in, limiting upside in the near-term. Strobaek said the
READ MORE... →Salient to Investors: The S&P 500 is at 15.3 projected earnings, the highest in 3 years. 72 percent of the 449 S&P 500 companies so far reporting have beaten earnings estimates, 56 percent have beaten sales estimates. Rick Fier at Conifer Securities said earnings are pretty much done and tapering is on the way
READ MORE... →Salient to Investors: Adam Johnson writes: The drumbeat against China’s ability to grow has been relentless despite more economic data over the past month beating forecasts than has fallen short. China’s retail sales so far in 2013 have risen by almost 13 percent, meeting economist forecasts. The iShares China Large-Cap ETF has fallen
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: Roelof-Jan van den Akker at ING said the S&P 500 Index may fall as much as 8.7 percent to support around 1,540 after climbing to the upper limit of its rising channel, followed by other markets.Van den Akker said the S&P 500 will then rebound. Read the full article at
READ MORE... →Salient to Investors: Jim Rogers is short India on very high debt to GDP and more government controls and regulations. Read the full article at http://blogjimrogers.blogspot.com/2013/08/jim-rogers-short-india-stock-market.html Click here to receive free and immediate email alerts of the latest forecasts.
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: 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: David Einhorn at Greenlight Capital Re lowered the reinsurer’s gold and commodities holdings in Q2, and was 90 percent in stocks at the end of June. Greenlight said the stock market’s rapid advance is creating a potentially unstable condition which could resolve a number of ways and is difficult to
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