Salient to Investors: David Stockman writes: Reliable signs of an economic recovery are few. Housing has not moved at all. Private construction spending is 7% below December 2007 levels, 43% below its early 2006 peak, at January 2002 levels nominally, and 1992 levels when adjusted for inflation. Spending is 2.1% of
READ MORE... →Salient to Investors: The Fed needs to be audited to determine if it has manipulated financial markets, which is not in its jurisdiction. Autonomy for the Fed ended when it started playing footsie with Wall Street. The bubble in stock prices was created by years of risky Fed policy. Even the
READ MORE... →Salient to Investors: David Stockman writes: Expect a central banker to soon herald that more monetary heroin is coming, triggering a market rally and pronouncements that its “correction” is over. It will take time for the market to lose its unwarranted faith in central bank omnipotence. However, money will now be made by selling
READ MORE... →Salient to Investors: Global growth is changing but we are not on the verge of a global recession. UK and US growth is solid, and the Eurozone is staging a weak recovery. China’s stock market drop says little about the health of the Chinese economy and matters little to investors outside China,
READ MORE... →Salient to Investors: More and more analysts are pointing to problems in China and other markets as posing a real threat to the American economy. Raoul Pal at the Global Macro Investor said the global GDP pie is shrinking and cites the dollar’s upward move against nearly all emerging-market currencies. In
READ MORE... →Salient to Investors: Ivan Martchev at Navellier & Assoc writes: Last week’s equity collapse was predicted by the dramatic increase in the spread between junk bonds and Treasuries. Credit spreads are good overall indicators. The sell-off in junk bonds was caused by weak commodity prices: new capacity in hard commodities and energy has
READ MORE... →Salient to Investors: David Stockman writes: The S&P 500 has sliced through both the 50-day and 200-day moving averages. 2130 on the S&P 500 will prove to be a generational high. CAT, China, European luxury brands, the NASDAQ Biotech Index are shorts. Expect the Fed to announce they are well short of
READ MORE... →Salient to Investors: Miles Hoffman writes: Expect at least a 20% move down, and a seasonally bearish Fall. Bear markets have two phases, and can move down and up sharply. The first is where the leading sector of the prior bull market goes into a bear market, while other sectors
READ MORE... →Salient to Investors: David Stockman writes: The real danger comes from the official institutions who have lapsed into empty ritualism and contrivance while the global economy and financial system becomes more unstable by the day. No sane person would inject $95 billion of new debt into busted Greece, or consider another round of fiscal stimulus
READ MORE... →Salient to Investors: Stocks are most useful for long-term goals so it does not make sense to change your investment strategy based on a blip (sic) of market activity. There is absolutely nothing abnormal going on in the market. Research shows that long-term portfolio performance suffers badly by missing just a few days
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