Salient to Investors: Tech, energy and financial stocks are the most inexpensive industries in the S&P 500 with multiples of less than 14 times earnings. US tech stocks, the second-best industry of the past decade, are at 13 times projected earnings, the lowest level versus the S&P 500 in at least 7 years. Analysts
READ MORE... →Salient to Investors: Chad Morganlander at Stifel Nicolaus there is a positive tone to the market in part because of belief that the Fed will continue to press on the gas. 74 percent of the 273 S&P 500 companies so far reporting beat earnings estimates, 55 percent missed sales estimates.
READ MORE... →Salient to Investors: Americans are allocating a smaller share of their spending to investment-related fees since the recession, a sign they are still wary of returning to financial markets. Stuart Hoffman at PNC Financial Services said people are shying away from stocks since the recession and have not really re-engaged in
READ MORE... →Salient to Investors: Terry Sandven likes the risk reward for equities but says it’s a ride the highs, buy the dips market. Frederic Dickson at D.A. Davidson said investors are tiptoeing in to figure out if it’s too hot or too cold. The majority of economists expect the Fed will lower
READ MORE... →Salient to Investors: Ben Inker writes: Capitalism should cause the return on capital to be in line with the cost of capital, and assets with similar risks should offer similar long-term returns. Equities should trade at replacement cost, and the long-term return to equities should be approximately the same as
READ MORE... →Salient to Investors: Graham Bishop at Exane BNP Paribas said market psychology has firmly bought into the prospect of policy escalation, and poor economic data is reinforcing such expectations – liquidity strength trumps growth weakness. Read the full article at http://www.bloomberg.com/news/2013-04-26/european-stocks-post-biggest-weekly-gain-in-five-months.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Bruce Zimmerman at Utimco said that in the 3 months ending February 28, his fund reduced bullion holdings of $1.4 billion by $375 million, and bought $75 million in gold futures, $225 million in developed-market equities and $75 million in emerging-market equity futures. Zimmerman said the fund’s total exposure to gold has not
READ MORE... →Salient to Investors: 73 percent of the 237 S&P 500 index members so far reporting have beaten earnings estimates, 56 percent missed on revenue estimates. 24 of 40 economists expect the ECB to cut its benchmark interest rate by 0.25 percent to 0.5 percent next week. Greg Woodard at Manning & Napier said the market is looking
READ MORE... →Salient to Investors: Calpers market value exceeds the high set before the global financial crisis wiped out more than a third of its wealth, but is is still short $87 billion, or 26 percent, of meeting its long-term commitments. Calpers has half of its money in equities, and returned 13 percent
READ MORE... →Salient to Investors: Tomomi Yamashita at Shinkin Asset Mgmt said earnings overall are not bad, but some share prices got way ahead of themselves triggering profit taking, while tech is a hard spot and needs to do more capital investment but are waiting for an improvement in the economy. The Topix
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