Salient to Investors: Russ Koesterich of BlackRock sees an increased risk of a correction and the best performing sector the defensives are very expensive – this is a very different rally than what people are used to. Koesterich sold smaller companies on concern the US economy is not expanding fast enough. Valentijn Van Nieuwenhuijzen at
READ MORE... →Salient to Investors: Omar Aguilar at Charles Schwab Investment Mgmt said earnings clearly will drive a lot of volatility in the next two weeks as the consensus is for a pretty diverse and poor earnings season, but we’ll see many positive surprises. Analysts project S&P 500 profits fell 1.8 percent
READ MORE... →Salient to Investors: BOE said rising equity markets don’t reflect the underlying economies and underestimates risks in the financial system. Potential threats to the financial system include the re-emergence of some elements of market behavior not seen since before the financial crisis, including a relaxation in some US credit markets of
READ MORE... →Salient to Investors: Justin Urquhart Stewart at Seven Investment Mgmt said today’s jobs data provides a dose of realism and the economy is falling to a lower, slower level of growth, so the market should not get too far ahead of itself. Urquhart Stewart said the concerns in Europe and Korea are enough reasons
READ MORE... →Salient to Investors: Mark Luschini at Janney Montgomery Scott said the payrolls report is a huge disappointment and will spook the market. Eric Zoldan at JHS Capital Advisors said we are in a very difficult economic environment and expects a lot of pressure on the market. Zoldan said most importantly the
READ MORE... →Salient to Investors: Students at more than 300 campuses, including the eight Ivy League schools, have joined fossil-fuel divestment activist group 350.org demanding that over the next 5 years universities purge their endowments of investments in 200 publicly traded companies with the largest reserves of oil, gas and coal. Scientists
READ MORE... →Salient to Investors: Bill Gross at Pimco said: The most renowned investors from Buffett to Fuss to Soros may owe their reputations to the most attractive era for money management as expanding credit fueled gains in asset prices across markets. Maybe the era made the man, not the man who made the era – the real test of
READ MORE... →Salient to Investors: The spread between analyst forecasts and S&P 500 stock prices is 5 percent, the smallest margin ever and less than half what it was when the index last peaked in October 2007, and versus the historical average of 14 percent. Bulls say the narrow margin shows securities firms are surprised by
READ MORE... →Salient to Investors: Randall Warren at Warren Financial Service said we need to see good economic reports and good earnings reports later this month for stocks to keep rising. Birinyi Associates says the rally is longer than the average length of bull markets since 1962 of 4 years – 4 of the
READ MORE... →Salient to Investors: David Stockman said: The Fed has flooded equity markets with cash while weakening the Main Street economy and the phony money has created an unsustainable bubble economy that will begin to falter within a few years. When it bursts, there will be no 2008-style bailouts and America will begin an era
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