Salient to Investors: Christopher Palmer at Henderson Global Investors said for most investors China remains the main show. The MSCI Emerging Markets Index has risen 7.6 percent in 2012 versus a 9.1 percent gain in the MSCI World Index, and trades at 11.4 times estimated earnings versus 13.3 respectively. Read the full article at http://www.bloomberg.com/news/2012-11-22/emerging-stocks-rise-fourth-day-on-china-data-gaza-cease-fire.html
READ MORE... →Salient to Investors: Deng Wenyuan at Soochow Securities said the economy may only show real improvement from Q2 or Q3 2013. The Shanghai Composite trades at 9.6 times estimated profit for 2012 versus the 17.8 average since 2006. Hao Hong at Bank of Communications said stocks are due for a technical bounce but the
READ MORE... →Salient to Investors: Yutaka Miura at Mizuho Securities said the Nikkei 225 has advanced on bullish signals including a double-bottom on November 19 above its 200-day moving average and a break out of resistance on an ichimoku chart, but volume must increase to maintain momentum and advance further. Read the full article at http://www.bloomberg.com/news/2012-11-21/nikkei-225-rally-may-falter-as-volume-wanes-technical-analysis.html
READ MORE... →Salient to Investors: Pakistan ranked first in risk-adjusted returns in the past 3 years – with stock volatility lower than 82 percent of other markets – and eighth over 5 years. The KSE 100 index is at 8 times reported 12-month earnings, a 25 percent discount to its 5-year average and less expensive than equity indexes
READ MORE... →Salient to Investors: Companies are paying special dividends at four times the pace of last year with rates poised to jump in 2013. The calendar is influencing even the payment of regular dividends. Dividends are regaining popularity after falling out of favor in the 1990s. Todd Lowenstein at HighMark Capital Mgmt said
READ MORE... →Salient to Investors: The S&P 500’s P/E ratio is below the ending level of 8 of the 9 bull markets since 1962, below the average of any bull market since Reagan, and up 35 percent since March 2009 versus an average 55 percent in bull markets since 1962. 245 of 500 S&P 500 companies have
READ MORE... →Salient to Investors: Amity Shlaes at the Bush Institute writes: 2013 may see a market drop similar to the 1937 one after the re-election of FDR in 1936, when industrial production plummeted by 34.5 percent and the Dow dropped by half. Parallels include: A pre-election spree that breached norms and set records. Budget-cutting
READ MORE... →Salient to Investors: Alan Greenspan said that if we get out of the fiscal cliff with a moderate recession, the price is very cheap. The CBOE OEX Volatility Index has risen 56 percent since its low on Sept. 21, the highest level since August 2011 relative to the CBOE Volatility Index of S&P 500 contracts.
READ MORE... →Salient to Investors: Net buying of long-term US equities, notes and bonds totaled $3.3 billion in September versus $90.3 billion in August and versus the median economist estimate of $50 billion. Millan Mulraine at TD Securities said the slowdown was due in part to the improvement in global sentiment towards Europe,
READ MORE... →Salient to Investors: Q3 earnings of 58 percent of 62 companies on the Bovespa index missed analysts’ estimates versus 62 percent that missed in Q2 and 60 percent that missed in Q1. 67 percent reported sales higher than expected – Rodolfo Amstalden at Empiricus Research said the divergence is in part due to increasing costs in a tight labor market. Analysts
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