Salient to Investors: Anna Stupnytska at Goldman Sachs Asset Mgmt said: The growth market and the emerging market should be the main focus. Emerging markets are undervalued because investors are focused too much on the developed world. Investors are undervaluing the BRIC story which is still valid long-term. grow center The rise of the
READ MORE... →Salient to Investors: Official inflation data is often incomplete or months out of date. Jahangir Aziz at JPMorgan Chase said that to a large extent, the Reserve Bank of India is essentially making decisions in the dark – India lacks a solid, good measure of inflation with much broader coverage of services, and
READ MORE... →Salient to Investors: The HSI Volatility Index reached a six-year low earlier this month, and the Nikkei Stock Average Volatility Index is trading near a 20-month low. Andrew Wong at Fortress Investment Group said the last time we heard that volatility was never going to rebound was in late 2006, just
READ MORE... →Salient to Investors: Profit margins had their first 12-month contraction since 2009 leaving investors increasingly dependent on economic growth to boost stocks. Bears say stagnant profitability accompanied recessions in 2000 and 2007. Bulls say housing and employment data indicate an accelerating economy and valuations are low. Russ Koesterich at BlackRock said margins collapse when
READ MORE... →Salient to Investors: Jim Goff at Janus writes: Only invest money you won’t need for five to 10 years, set it and forget it. Australia has the best such plan with its mandatory retirement fund contributions of 9% of salary – assets now exceed Australian GDP and the Australian stock market. Bad headlines are the
READ MORE... →Salient to Investors: Masaru Hamasaki at Toyota Asset Mgmt said: Investors expect further BOJ stimulus but are also losing hope that big enough steps will be taken. Japanese shares are outperforming versus overseas markets because the yen’s strengthening trend has eased. The 2 percent growth of US GDP was certainly good as the headline,
READ MORE... →Salient to Investors: Dale Roberts writes: Very few middle class investors will retire due to the money generated from their investment portfolio or their investment philosophy. The stock market is mostly long periods of losing money against inflation, punctuated by two rabid bull markets that led to extreme overvaluation. Regularly, US equity
READ MORE... →Salient to Investors: Mercenary Trader writes: The routine intervention of the Central Banks, the Greenspan Put transitioning to the Bernanke Put, have underscored the “bad news is good news” phenomenon. Good news is good news because things are getting better. Mediocre news is good news because it means CBs keep rates near
READ MORE... →Salient to Investors: Albert Sung at Katchum Macro-Economic Blog writes: The Fed can print money but can’t control where it goes. Money is now flowing into Asia – Thailand, Indonesia, Hong Kong, Shanghai, Australia are at new highs, while the Hong Kong and Shanghai real estate markets are making new highs. Asian real estate developers in
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Structural headwinds in terms of economic growth, the budget deficit, and the fiscal cliff will dominate the economic debate no matter who wins the election – meaning lower growth due to the excessive debt and leverage built up over 10 or 20 years. Future annual
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