Salient to Investors: The MSCI World Energy Index is down 9.6 percent in 2012, more than any other group, and is up 45 percent since the market bottom in 2009, less than any other industry with earnings tied to economic growth. U.S. energy stocks are at the cheapest levels relative to the
READ MORE... →Salient to Investors: George Soros called on Europe to buy Italian and Spanish bonds, warning a failure by leaders meeting on June 28 to produce drastic measures could spell the end of the euro. Wayne Lin at Legg Mason says the EU summit won’t produce anything extraordinary, that Soros’ views are extreme, and expects more volatility.
READ MORE... →Salient to Investors: The cheap valuations of European banks, Japanese carmakers, Hong Kong developers and Russian oil producers are attracting investors, indicating that most investors are more concerned with preserving capital than earning higher returns. Shares with the lowest price-to-book ratios lost an average 10 percent since March 2012 and trailed the most expensive shares by
READ MORE... →Predictions: Bill Gross warned that risk markets are vulnerable as the monetary bag of tricks empties. Gross prefers U.S., Mexico and Brazil debt with intermediate maturities over the next few years, and stocks in companies that produce stable cash flow in high growth markets. Gross increased the proportion of U.S. government and Treasury debt in the
READ MORE... →Salient to Investors: Isao Kubo at Nissay Asset Management said all the data yesterday points to a slowdown, and we can’t expect immediate stimulus measures. Kubo said Japanese stocks are resilient because of the yen, the biggest barometer for Japan’s corporate outlook. The Topix sells for 0.88 times book value. Tomoichiro Kubota at Matsui Securities said employment and housing
READ MORE... →Salient to Investors: George Elliott at Naftilia Asset Management said: Investing in Russia after its 1998 currency crisis, in Argentina in 1992 after it defaulted on its debt, or in the S&P 500 Index in March 2009 at its lowest point in 13 years were the best investment opportunities over the past 20 years.
READ MORE... →Salient to Investors: fixed income payday loans China is to cut the minimum requirement on assets under management to $500 million from $5 billion for foreign institutional investors looking to buy publicly traded securities in mainland exchanges and invest in the interbank bond market. Foreign investors will now be required to have at least
READ MORE... →Predictions: Esther Law at Societe Generale said the Fed did the bare minimum extending operation twist, which will be perceived as short-term negative for risky assets, including global emerging markets. Law said China’s manufacturing sector, especially small and medium-sized factories, continued to slip. JPMorgan raised Indian equities to overweight from neutral. Read the
READ MORE... →Predictions: pavement Stefan Angele at Swiss & Global Asset Management says uncertainty about Europe and the slowdown in China remains – the extension of Operation Twist was largely symbolic and will have no significant effect on either economic growth or the markets. Read the full article at http://www.bloomberg.com/news/2012-06-21/asian-stocks-gain-after-fed-extends-stimulus-as-oil-euro-drop.html
READ MORE... →Salient to Investors: Shares of casual-dining chains are rallying despite Americans eating out less because investors prefer holding stocks with little foreign exposure. Rachael Rothman at Susquehanna Financial Group said investors are fearful of holding companies that have a lot of business outside the U.S. Martin Leclerc at Barrack Yard Advisors is bearish,
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