Salient to Investors: Lloyd Blankfein at Goldman Sachs said the US is the brightest spot in the global economy: US recovery is shallow but established. Blankfein said globally we will muddle through. Will Tseng at Mirae Asset Global Investments said US growth is moderate, but better than Europe or Japan.
READ MORE... →Salient to Investors: Laszlo Birinyi at Birinyi Associates said the S&P 500 Index has a 51 percent chance of rising to 1,820 by February 2014 and a 75 percent chance by April 2014. David Einhorn at Greenlight Re said he has become more conservatively positioned, and continues to be short
READ MORE... →Salient to Investors: ATP, Denmark’s biggest pension fund said: Unprecedented stimulus from the biggest central banks has supported prices in “risky” markets, including equities, so investors need to brace themselves for potential disruptions when normalization of monetary policy comes, as recent investor reaction to the Fed’s warning of tapering showed
READ MORE... →Salient to Investors: Vivek Wadhwa at Singularity University said about Twitter IPO: Company long-term has no future – OK for the next 1 to 2 quarters but 1 to 2 years out it is hard to see where their growth will come from as their marketplace is limited, mainly to the US, while
READ MORE... →Salient to Investors: Disruptions to the economy prompted speculation the Fed would maintain the pace of its $85 billion in monthly bond purchases. BlackRock Inc. and Pacific Investment Management Co. say the Fed will postpone tapering as a result of the debt-ceiling debate. Russ Koesterich at BlackRock said the disruption
READ MORE... →Salient to Investors: The Dow looks primed to finish the week less than 100 points below where it opened Monday, just before the government shutdown started. David Ader at CRT Capital said we are all surprised the markets have not sent more of a signal. On the day Congress initially
READ MORE... →Salient to Investors: Jay Peloski at Itau said global equity market leadership is shifting from the US to the non-US developed markets. Guillermo Felices at Barclays said European and Japanese equities have more room for earnings improvement. Based on forward estimates, earnings growth in Europe is 46%, in Japan is
READ MORE... →Salient to Investors: Since 1976, the S&P 500 has risen 11 percent on average in the 12 months following a government shutdown versus an average return of 9 percent over 12 months. There have been 17 shutdowns since 1976, with 5 occurring within 3 months of each other – in
READ MORE... →Salient to Investors: The S&P 500 Index return in 2013 is tracking day-to-day price moves in 1954 almost identically – a correlation coefficient of 0.95. In 1954 the S&P 500 rose a record 45 percent to reach a new high for the first time since 1929. Jim Paulsen at Wells
READ MORE... →Salient to Investors: Markit reports US hedge funds were short 2.4 per cent of shares, close to an all-time low. Only 6 companies reporting earnings this week have more than 3 per cent of their stock sold short. In Europe’s Stoxx 50 index of top companies, it is only 2. HFR
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