Salient to Investors: Andrew Swan at BlackRock said: Blackrock has an overweight position in Korea stocks as a lot of negativity is already priced in and the market is so cheap. The South Korean equity market could be in the early stages of bottoming. A recovery in domestic demand may help
READ MORE... →Salient to Investors: Jonathan Garner at Morgan Stanley said the problems are more than just reaction to a Fed tightening, but include declining relative return on equity compared to developed markets. The Russian Micex is at 5 x estimated earnings, the cheapest in emerging markets. The MSCI Emerging Markets Index
READ MORE... →Salient to Investors: Julian Robertson at Tiger Mgmt said bonds are at ridiculous bubble levels as governments worldwide buy bonds to keep their countries growing. Robertson said the bond bubble will end very badly but is finding equity opportunities in great companies, like Alibaba. Leon Cooperman at Omega Advisors said
READ MORE... →Salient to Investors: The Teacher Retirement System of Texas cut its hedge fund allocation to 8% from 9%, cut equities by 4 percentage points and fixed-income by 2 percentage points, and increased risk parity – a strategy based on allocation of risk and private equity and real assets – and
READ MORE... →Salient to Investors: BIS said unprecedented stimulus by central banks and historically low volatility levels across asset classes have made it more likely that emerging markets will destabilize. BIS said governments and companies from Latin America to Asia have boosted borrowing in local and foreign currencies, leaving them more vulnerable when
READ MORE... →Salient to Investors: The S&P 500 has closed at new highs 33 times in 2014, while less than 6% of stocks are in bear markets. 47% of Nasdaq Composite stocks and over 40% of Russell 2000 and Bloomberg IPO Index stocks are at least 20% off their 12-month highs. 45% of
READ MORE... →Salient to Investors: Andrew Garthwaite et al at Credit Suisse say there is a 25% chance Scotland will choose independence on September 18, while markets will price in a 35% chance, so recommend buying Scottish stocks 2 days before the vote because investors tend to overact to political uncertainty. If independence wins, they
READ MORE... →Salient to Investors: Jeffrey Gundlach at DoubleLine Capital said: The Shanghai Composite Index is worth a speculation, but his favorite stock market long-term is India. Yields on 10-yr US Treasuries may reach 2.65% this year. Does not own any foreign currency bonds – the biggest risk in a rise in yields
READ MORE... →Salient to Investors: The Ibovespa stock benchmark has risen 35% from its March 14 bottom – the best performance of global major equity indexes – despite economists cutting 2015 growth forecasts month after month to a record low. Bullish investors are betting on a new government in October that will lure investment.
READ MORE... →Salient to Investors: The FTSE 100 Index is within 0.1% of its 1999 high, after which it fell for 3 years, The cost of hedging against losses in the FTSE 100 is close to a 2-year high. Alan Higgins at Coutts is not overweight UK equities and said the FTSE
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