Salient to Investors: Brian Belski at BMO Capital says: Target S&P500 at 1425 year-end so taking money off table, sees short-term volatility due to noisy election cycle. Sees no correction or bear market but a pullback near term to 1400. Target S&P500 of 1575 for 2013. Longer term bottom in housing in place and this stabilisation is good
READ MORE... →Salient to Investors: Germany advanced legislation that would force high-speed trading firms to register with the government and limit their ability to rapidly place and cancel orders. The European Commission agreed on even broader rules for all of the EU if governments also give their approval. Celent estimates high-speed trading accounts for 30
READ MORE... →Salient to Investors: Matthew Sherwood at Perpetual Investments said investors are finally realizing that liquidity injections from central banks do nothing to address the structural issues. Read the full article at http://www.bloomberg.com/news/2012-09-26/asian-stocks-fall-on-investor-concern-on-stimulus-effect.html
READ MORE... →Salient to Investors: Shanghai Composite Index is down 9.9 percent this quarter, down 8.9 percent in 2012, is the worst performer among global markets after Cyprus, and sells for 9.3 times estimated earnings versus an average of 18 since 2006. Wang Zheng at Jingxi Investment Mgmt said the market has no confidence in China’s old growth model of investment
READ MORE... →Salient to Investors: Goya Nakao at Sompo Japan Nipponkoa Asset Mgmt said monetary easing won’t create demand, and catalysts for a market rebound are missing – there’s some improvement in sentiment in Europe, the U.S. economy is weakening, and the timing of a rebound in China is being pushed back. The
READ MORE... →Salient to Investors: Smaller stocks are outperforming larger stocks in 2012. Top sector is healthcare, followed by consumer discretionary, telecom and financials. Bottom is utilities, followed by energy, industrials, technology, consumer staples and materials. Read the full article at http://seekingalpha.com/article/884011-best-performing-russell-3-000-stocks-and-sectors-in-2012?source=intbrokers_regular
READ MORE... →Salient to Investors: Song Guoqing at Peking University said the economic slowdown may run into 2013 amid a lack of funding for approved infrastructure projects. Song expects growth of 7.3 to 7.4 percent in Q4 and 7 to 7.5 percent in half1 2013. Wu Kan at Dazhong Insurance sees room for the market to drop. The Shanghai index is
READ MORE... →Salient to Investors: Toru Higuchi at Japan’s Teachers’ Mutual Aid Co- operative Society will start investing in REITs and hedge funds. Japan’s has the world’s second-largest retirement pool, after the U.S., with only 6 percent in alternative assets versus 25 percent in the U.S. and 24 percent in Australia. Read the full article at
READ MORE... →Salient to Investors: Morningstar reported that investors withdrew $300 billion net from actively managed U.S. equity stock funds in the 3-yr period through July 31, while buying a net $140 billion of passively managed funds and ETFs, and bond funds took in $734 billion. $3 trillion-plus is invested in equity mutual funds and ETFs.
READ MORE... →Salient to Investors: Brazilian small-caps are at 1.59 times book versus 3-yr low of 1.33 in June and the highest versus the Bovespa since February 2009. Consumer stocks account for 30 percent of the small-cap index, almost three times as much as their share in the Bovespa, where commodities producers account for 43 percent. Herculano
READ MORE... →