Salient to Investors: Jim O’Neill writes: Nothing has materially changed by the US election and the Chinese leadership handover. The positive surprise in Korean exports in October indicates a pick up in world trade. Japan reported its first seasonally-adjusted current account deficit following other generally grim economic news. It is
READ MORE... →Salient to Investors: Neel Kashkari at Pimco said stock-market volatility will increase by the end of the year as Congress delays reaching a resolution on extending spending and tax cuts until 2013. Kashkari sees brinkmanship like with the debt ceiling a year ago, and choppy markets up until the last second when a
READ MORE... →Salient to Investors: Wu Kan, a fund manager at Dazhong Insurance said the market focus is returning to the fiscal cliff. The MSCI Emerging Markets Index trades at 11.4 times estimated earnings versus 13.2 times for the MSCI World Index. 57 percent of MSCI Emerging Markets Index companies so far reporting have missed
READ MORE... →Salient to Investors: Arnaud Scarpaci at Agilis Gestion said earnings have been positive, and Europe is recovering – all is functioning in the micro-economy. 54 percent of Stoxx 600 companies so far reporting have exceeded analysts earnings projections. Matthieu Giuliani at Banque Palatine said catastrophe in Greece has been avoided, but the problem is no growth, so have
READ MORE... →Salient to Investors: Brian Jacobsen at Wells Fargo Advantage Funds and Bruce Bittles at RW Baird said Obama will continue to support the Fed’s interest-rate policy. Bittles said Obama’s victory will make the fiscal cliff more difficult to deal with. Jacobsen said Bernanke will serve another term because his academic writings recognizes that
READ MORE... →Salient to Investors: James Dunigan at PNC Wealth Mgmt said the fiscal cliff is going to be very messy, though we’ll get there. Alan Greenspan said the election perpetuated the political status quo and hasn’t increased the probability of resolving the fiscal challenges. Barry Knapp at Barclays recommended cutting risk, and lowered his estimate for the S&P 500
READ MORE... →Salient to Investors: Fidelity Investments and Pimco said the fiscal cliff and Fed bond purchases will drive demand for debt. Roger Bridges at Tyndall Investment Mgmt we’re back into political games – if we continue this policy uncertainty, then the economy will fall and bonds will rally. Bill Irving at Fidelity said people own government
READ MORE... →Salient to Investors: Chris Weafer at Sberbank Investment Research said people are looking to the tough schedule ahead for the US coupled with uncertainty surrounding Greece and the euro zone. Michael Ganske at Commerzbank said a clear-cut win for Obama is good news as the political agenda of Romney had question marks. Arjuna
READ MORE... →Salient to Investors: Ross Teverson at Standard Life Investments said we are in a good place for emerging markets – short-term emerging market equities will be dependent on developed markets, but the structural outlook is very compelling. Teverson said he doesn’t need to own a Chinese bank or a Brazilian bank just
READ MORE... →Salient to Investors: Swings in US stocks are at the lowest level in 6 years, an indicator that has most often coincided with incumbent parties keeping the presidency in data going back to 1900. Daily changes in the Dow have trailed the 112-year average of 0.75 percent in 13 of 17 instances
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