Salient to Investors: IPOs globally raised $41.3 billion, the worst Q2 since 2009, down 34 percent from a year ago – hurt by Europe, slowing Chinese growth, and Facebook’s drop. Asia saw its slowest Q2 for IPOs since 2009. The S&P 500 Index moved an average of 1 percent a day in June, about twice the rate
READ MORE... →Salient to Investors: China’s Shanghai Composite Index erased its 2012 gain on concern a manufacturing slump and Europe will deepen the economic slowdown. Wu Kan at Dazhong Insurance Co said the Chinese economy is still slowing and earnings growth forecasts have further room to fall, and investors have no idea how slow earnings
READ MORE... →Predictions: Bill Gross said: It will take economies and financial markets decades to normalize after the debt crisis, keeping U.S. securities the safest bet for investors. This is an authentic debt crisis and can only be ultimately cured by default or printing more money to inflate it away. A debt crisis can’t be cured with more debt
READ MORE... →Salient to Investors: The Shanghai Composite trades at 9.69 times estimated profit, versus the MSCI BRIC Index (MXBRIC), at 8.36 times profit. Qu Hongbin at HSBC Holdings said China hasn’t responded quickly enough to the economic slowdown. Predictions: Yu Guang of Invesco Great Wall Fund Management says China’s economy will remain in the doldrums in
READ MORE... →Predictions: Mike Lenhoff at Brewin Dolphin Securities said China is prepared to ease, which will be good for European markets, particularly cyclical stocks – investors sense a more determined spirit to push through tangible measures in Europe. Julian Callow at Barclays Capital forecasts ECB rates will be cut on July 5. Read the full article
READ MORE... →Predictions: Binky Chadha at Deutsche Bank said: Economic reports are due to improve, lifting U.S. stocks. Investors are suffering from data disappointment that has become extreme by historical standards – the typical pattern from here would be for fewer negative surprises and then positive ones. Economic data has been the key driver of equities,
READ MORE... →Salient to Investors: Hank Smith at Haverford Trust sees the market bouncing along the bottom. Laura Martin at Needham said academic research shows that the greater the diversity on a corporation’s board, the higher the returns to shareholders. Sam Stovall at S&P said the lack of direction is understandable given investors await the outcome of the
READ MORE... →Salient to Investors: The Bank for International Settlements said government bonds losing their risk-free status are depriving investors of wealth-preservation opportunities while Europe’s debt crisis boosts demand for havens. The global pool of safer assets has shrunk just as demand has risen due to a flight to safety, leading to a
READ MORE... →Salient to Investors: George Soros said: A failure to produce drastic measures could spell the demise of the Euro. Europe should create a European Fiscal Authority to purchase sovereign debt in return for Italy and Spain implementing achievable budget cuts – funding to come from the sale of European Treasuries, which would
READ MORE... →Salient to Investors: Europe’s debt crisis is pressuring global earnings. Analysts predict S&P 500 companies will report a 1.1 percent average drop in Q2 earnings, the first decline in 11 quarters and after a 6.2 percent average increase in Q1. A stronger dollar threatens earnings as U.S. exports become more expensive. Predictions: Tim Ghriskey at Solaris Group doesn’t expect
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