Salient to Investors: The Stoxx 600 is at 12.3 times estimated earnings, its highest multiple since December 2010. Peter Garnry at Saxo Bank A/S said the divergence in the purchasing managers’ index figures between France and Germany shows that Europe is diverging into an A and a B team, with France joining the B team
READ MORE... →Salient to Investors: Peter Elston at Aberdeen Asset Mgmt said is very concerned about the near-term global economy, sees significant weakness around the corner which will have a big impact on corporates and markets. The MSCI Asia Pacific index is 12.8 times estimated earnings versus 14.1 for the S&P 500 and 12.1 for the Stoxx Europe 600
READ MORE... →Salient to Investors: The S&P 500 is at 14.9 times reported earnings versus average 16.3 since 1954. Read the full article at http://www.bloomberg.com/news/2012-09-21/s-p-500-snaps-two-week-rally-amid-global-economy-concern.html
READ MORE... →Salient to Investors: Options traders are paying record prices to protect against swings in long-term U.S. Treasuries relative to stocks amid concern inflation will accelerate. The ratio between implied volatility for contracts closest to the iShares Barclays 20+ Year Treasury Bond Fund and the SPDR S&P 500 ETF Trust reached the highest since
READ MORE... →Salient to Investors: The S&P 500 is at 14.9 times reported earnings versus the average 16.3 multiple since 1954. Michael Price at MFP Investors says the U.S. is the most attractive stock market because of the strength of corporate balance sheets, low interest rates and valuations. Price said it’s very early for European stocks. Read the
READ MORE... →Salient to Investors: Frank Velling at BankInvest recommends reducing holdings of equities as the global rally in stocks will fade as the budget dispute in Congress and election will stifle growth. Velling said global stocks can’t rise much more on monetary stimulus – any further advance rely heavily on a pick-up in U.S. economic growth. Read
READ MORE... →Salient to Investors: Richard Hunter at Hargreaves Lansdown said unemployment and housing in the U.S. are the twin drags which need resolving. The S&P 500 at 14.1 times estimated earnings is close to its highest price multiple since the end of 2010. Read the full article at http://www.bloomberg.com/news/2012-09-19/u-s-stock-futures-rise-on-housing-market-outlook.html
READ MORE... →Salient to Investors: Joachim Fels at Morgan Stanley said: It won’t take much to tip the world into a global recession Central banks in Europe, China, U.K. and Japan will further ease, thereby supporting asset prices, preventing deflation, helping avert sovereign defaults and maintaining economic growth. Central banks on their own cannot bring a sustainable
READ MORE... →Salient to Investors: Net buying of long-term U.S. equities, notes and bonds totaled $67 billion during July versus $9.3 billion in June. Guy LeBas at Janney Montgomery Scott says European investors bought Treasuries et al to protect against deterioration in the euro financial markets, and this will continue into August. China holdings of U.S. Treasuries in July rose $2.6
READ MORE... →Salient to Investors: Thomas Nyheim at Christiana Trust expects the market to flatten out until the election, slowed down by the European debt crisis is not being handled except by Band-Aids. The S&P 500 is at 14.1 times estimated earnings, near its highest multiple since the end of 2010. Bearish index options contracts are the cheapest in more than
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