Salient to Investors: Only 3 emerging-market stock pickers avoided losing money in half1 by making prescient currency bets and buying companies insulated from economic swings and government interference. They recommend Philippine retailers, Chinese Internet companies and Indian drugmakers. Lewis Kaufman Thornburg Developing World Fund said there are many going wrong. Kaufman is overweight
READ MORE... →Salient to Investors: 10-year Treasuries yield 2.61 percent versus the S&P 500 aggregate earnings yield of 6.4 percent – more than double the average spread of 1.9 points since 2000. Investors are avoiding longer-term Treasuries, concerned that returns will be depressed for years, and money managers foresee the end of a rally that
READ MORE... →Salient to Investors: Ethan Anderson at Rehmann Financial said investors have been shaken by the concept of rising interest rates, a reduction in Fed stimulus, and uncertainty about the Chinese central banking system. Goldman Sachs cut its 2013 forecast for China’s economy and said the cash squeeze is hurting growth. Vasu Menon
READ MORE... →Salient to Investors: Ken Fisher at Fisher Investments said: The rally that began in 2009 is only in its middle stages because most investors still underestimate the strength of the economy – in between the transition from skepticism to optimism It is amazing that people do not marvel at the power of
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: Gregg Berman at the SEC’s Office of Analytics and Research said most mini-flash stock crashes are not the result of broken software but human errors like entering the wrong number of shares or some other typographical error, or incorrectly entering limit orders – these errors can be fixed
READ MORE... →Salient to Investors: The cost of 3-month puts on the iShares FTSE China 25 Index Fund have risen to the highest since September 2012. Morgan Stanley has joined UBS and Barclays in lowering predictions for China’s economic growth. Derrick Irwin at Wells Fargo Advantage Emerging Markets Equity Fund said investors are nervous about
READ MORE... →Salient to Investors: The IMF lowered its US growth forecast for 2014 to 2.7 percent, maintained 2014 at 1.9 percent, and said the Fed will maintain QE until at least the end of 2013. Bryan Novak at Astor Asset Mgmt said interest rates need to rise, but with growth is
READ MORE... →Salient to Investors: David Kelly at JPMorgan Funds said the theme of whether the Fed will stop being easy and what that means for interest rates is not a significant negative for the stock market and the market may be overreacting. Bruce Bittles at RW Baird said it is disconcerting
READ MORE... →Salient to Investors: Jim Rogers said: When investing, don’t follow the crowd Most government numbers are made up. China has problems with housing and inflation as the US did in the 19th century when it was growing rapidly. Every country that grows rapidly has problems. The US had recessions and
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