Salient to Investors: Nouriel Roubini writes: For the next year or so, as long as the economy grows 1.5-2%, and you have easy money, the market can go higher. Growth is slow, earnings growth is slowing down. both top and bottom lines are not as good as they were, but
READ MORE... →Salient to Investors: Peter Jankovskis at Oakbrook Investments says the market has built a nice base, gotten through earnings season, and is in the phase where economic reports will determine if it can hold up. 86 percent of S&P 500 stocks trade above their 50-day moving average, the highest level
READ MORE... →Salient to Investors: Scott Black at Delphi Management expects the S&P 500 to rally further on continued Fed stimulus, S&P 500 earnings that will reach $105 a share in 2013, and no returns from fixed-income. Black said we are not even near unemployment below 6.5 percent. The average equity strategist predicts the
READ MORE... →Salient to Investors: Larry Fink at BlackRock says investors should be heavily invested in equities due to its fair value at a 15.5 P/E ratio for the S&P 500 and good earnings season. Jeffrey Gundlach at DoubleLine said in mid-April that he expects a catastrophic failure because the developed world
READ MORE... →Salient to Investors: The wealth effect from rising house prices may no longer be as effective in spurring the US economy as homeowners increasingly pay down mortgage principal and shorten maturities. Freddie Mac said cash-in refinancings outnumbered cash-outs by more than 2-to-1 in Q4 2012. Amir Sufi at the University of Chicago said the
READ MORE... →Salient to Investors: Tech, energy and financial stocks are the most inexpensive industries in the S&P 500 with multiples of less than 14 times earnings. US tech stocks, the second-best industry of the past decade, are at 13 times projected earnings, the lowest level versus the S&P 500 in at least 7 years. Analysts
READ MORE... →Salient to Investors: Chad Morganlander at Stifel Nicolaus there is a positive tone to the market in part because of belief that the Fed will continue to press on the gas. 74 percent of the 273 S&P 500 companies so far reporting beat earnings estimates, 55 percent missed sales estimates.
READ MORE... →Salient to Investors: Americans are allocating a smaller share of their spending to investment-related fees since the recession, a sign they are still wary of returning to financial markets. Stuart Hoffman at PNC Financial Services said people are shying away from stocks since the recession and have not really re-engaged in
READ MORE... →Salient to Investors: Terry Sandven likes the risk reward for equities but says it’s a ride the highs, buy the dips market. Frederic Dickson at D.A. Davidson said investors are tiptoeing in to figure out if it’s too hot or too cold. The majority of economists expect the Fed will lower
READ MORE... →Salient to Investors: Bruce Zimmerman at Utimco said that in the 3 months ending February 28, his fund reduced bullion holdings of $1.4 billion by $375 million, and bought $75 million in gold futures, $225 million in developed-market equities and $75 million in emerging-market equity futures. Zimmerman said the fund’s total exposure to gold has not
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