Salient to Investors: Nouriel Roubini writes: QE is not creating credit for the real economy, but instead boosting leverage and risk-taking in financial markets. Issuance of risky junk bonds under loose covenants and with excessively low interest rates is increasing, the stock market is reaching new highs, despite the growth slowdown,
READ MORE... →Salient to Investors: Overseas investors sold the most Indonesian shares since March 2011 as rising US Treasury yields lure capital from emerging markets. Read the full article at http://www.bloomberg.com/news/2013-06-12/indonesian-stocks-fall-as-investors-sell-most-shares-since-2011.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Jim O’Neill said: The US is returning to normality so expect 10-yr T-yields to rise toward 4 percent in the next couple of years as the 30-year bull market in bonds comes to an end. There will be quite ugly days. The global economy is in the early stages of
READ MORE... →Salient to Investors: Jim O’Neill writes: When the Fed starts to taper, expect turbulence in financial markets, especially for overpriced assets. We are headed to a normal 10-yr T-yield of 4 percent or more versus 2.2 percent now, and to a return of the equity culture. mcd-grp.com/cat/ In 1994, Greenspan made it clear that
READ MORE... →Salient to Investors: Franklin Templeton Asset Mgmt (India) and Nomura Asset Mgmt predict rupee bonds will extend the longest run of gains in more than a decade as inflation below 5 percent adds room for interest-rate cuts. Nomura says easing price pressures will allow India to add to the most aggressive
READ MORE... →Salient to Investors: The economic expansion shows signs of lasting almost twice as long as average, with few of the excesses that often presage the start of contractions – inflation is slowing, not quickening, household debt is shrinking, not expanding, and the labor market is slack, not tight. Robert Gordon
READ MORE... →Salient to Investors: Shares of discount brokers are gaining the most since 2003 relative to the S&P 500, a sign that small investors are joining the 4-year bull market. Discount broker stocks beat the market by at least this much in 1997, 1999, 2003 and 2009, years in which the S&P 500
READ MORE... →Salient to Investors: Japan’s GPIF will reduce its holdings of Japanese bonds to 60 percent from 67 percent, increase local shares to 12 percent from 11 percent, increase foreign bonds to 11 percent from 8 percent, and increase overseas shares to 12 percent from 9 percent. Makoto Suzuki at Okasan Securities said the
READ MORE... →Salient to Investors: Max Gottschalk at Gottex Fund Mgmt said: His largest Asia fund’s bets on small Japanese companies have been cut and the fund now allocates 2/3 of its Japan investments with managers that focus on large companies. A big part of the rally in Japanese equities has been in small
READ MORE... →Salient to Investors: David Stockman says: We are in serial bubbles. Greenspan and Bernanke have inflated bubbles for years by keeping interest rates low. A system of bubble finance is geared towards massive borrowing and speculation on leverage, everyone will do it – a gambler’s dream. Financial markets are full
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