Salient to Investors: The National Association for Business Economics expects: The US economy to grow 2.1 percent in 2013 – 1.6 percent in Q4, 1.8 percent in Q1, 2.4 percent in Q2, 2.6 percent in Q3, and 3 percent in Q4. Unemployment will average 7.7 percent in 2013. Housing to again be
READ MORE... →Salient to Investors: The average analyst expects capital spending by S&P 500 companies to drop 1.3 percent in 2013 after 3 years of growth. Bears say the last decline was at the end of 2008, just before stocks slumped to a 12-year low, and expect CEO pessimism to sap the rally. Bulls say
READ MORE... →Salient to Investors: David Sowerby at Loomis Sayles it’s a tug of war between the fiscal cliff and global monetary easing – most bullish is valuation and an accommodative Fed. The average analyst expects capital spending by S&P 500 companies to drop 1.3 percent in 2013 after 3 years of growth. Bears say the last decline was at
READ MORE... →Salient to Investors: Allan Conway at Schroder Investment Mgmt said: Emerging-market equities will return as much as 20 percent in 2013 as consumers drive growth, leaving them less reliant on the US and Europe. India and China will drive economic growth among developing nations in 2013 The increasing relative resilience of emerging
READ MORE... →Salient to Investors: David Chalupnik at Nuveen Asset Mgmt said market fundamentals are looking better. Scott Minerd at Guggenheim Partners said the fiscal cliff is creating value in equities as too much negativity is priced in – the fiscal cliff is a non-event. Steven Milunovich at UBS cut his price estimate for Apple to $700 from
READ MORE... →Salient to Investors: Michael Hartnett at Bank of America Merrill Lynch said emerging-market stocks are poised to fall after weekly emerging-market fund inflows were the biggest in 10 months and triggered a Sell signal – that 4-week inflows totaling at least 1.5 percent of assets under management precede market declines. Hartnett said the most overbought are the most
READ MORE... →Salient to Investors: Scotland’s biggest money managers do not expect the Europe economic slump to end anytime soon. Ben Ritchie at Aberdeen Asset Mgmt expects years of zero or little growth, with strong companies getting stronger and weak companies getting weaker. Greig Bryson at Scottish Widows Investment Partnership looks for companies that can grow irrespective of the
READ MORE... →Salient to Investors: Dai Ming at Hengsheng Hongding Asset Mgmt said it appears institutional investors are increasing stock positions in order not to miss the boat as the economy has stabilized. The Shanghai Composite trades at 11.9 times reported earnings. Accounts containing funds to trade stocks dropped last week to the lowest level since November 2010.
READ MORE... →Salient to Investors: Peter Oppenheimer at Goldman Sachs said: Quantitative easings have left little value in the credit markets, so investors should look for returns in European equities over bonds. The STOXX Europe 600 could see annual returns of more than 7 percent despite stagnation in the euro area. Because of a net absence
READ MORE... →Salient to Investors: Mohamed El-Erian writes: Analysts will be hard pressed to explain how equity markets ended unchanged on the day of an unprecedented policy announcement from the Fed. The Fed’s shift to employment and inflation thresholds was a surprise as most analysts expected this would not occur until March 2013 at
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