Salient to Investors: International purchases of U.S. stocks, bonds and other financial assets were more than twice as much as forecast in November as investors sought shelter from a global economic slowdown. Millan Mulraine at TD Securities sees further inflows. The World Bank projects the world economy to grow 2.4 percent in 2013 versus a June
READ MORE... →Salient to Investors: Brad Sorensen at Charles Schwab said the World Bank cuts in growth forecasts are reminders that there’s still work to be done. Sorensen likes earnings so far and the sizable money on the sidelines could boost the market higher. The World Bank cut its global growth forecast for
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said job creation, tame inflation and rising home prices support solid retail spending in 2013, but consumer cyclicals may underperform the market because these positive economic trends are already discounted – the S&P 500 GICS Consumer Discretionary Sector Index has outperformed the broader market by
READ MORE... →Salient to Investors: EPFR Global said investors added a record $3.1 billion to equity mutual funds in the first week of 2013, the most since it began tracking the industry in 2000. Investors withdrew $69.1 billion from US equity funds in 2012 and $375 billion since 2007. Walter Todd at Greenwood Capital Associates said
READ MORE... →Salient to Investors: David Kostin at Goldman Sachs said volatility – the drawdown risk – will deter investors from moving into stocks from bonds in 2013 even as dividend returns exceed fixed-income yields. Kostin said most investors will sell US government bonds if losses push the 10-yr Treasury yield to 3 percent from 1.85
READ MORE... →Salient to Investors: Morgan Stanley said leverage among equity managers climbed to the highest level to start any year since at least 2004. Margin debt at NYSE firms rose in November to the highest since February 2008. James Dunigan at PNC Wealth Mgmt said leverage is increasing among hedge-funds. Gross leverage at hedge
READ MORE... →Salient to Investors: James Paulsen at Wells Capital Mgmt said Apple is the story for the market and proxy for other companies and industries. James Cordwell at Atlantic Equities Service said IPhone sales are slowing because smartphones have saturated developed markets. Almost 80 percent of the 28 S&P 500 companies so far
READ MORE... →Salient to Investors: JPMorgan report that stocks have retraced the pattern from the last two big market rallies and now face a decline in 2013 of over 50%. Nouriel Roubini at NYU says there is a chance of an economic “perfect storm” in 2013 due to a worsening eurozone crisis,
READ MORE... →Salient to Investors: John Manley at Wells Fargo Advantage Funds said valuations are far from excessive. Analysts expect S&P 500 Q4 profits to increase 2.9 percent. The VIX has fallen 40 percent over the past 6 sessions, the biggest decline since November 2008. Michael Riesner and Marc Mueller at UBS said the bull
READ MORE... →Salient to Investors: Barry Ritholtz at The Big Picture says: Obama has nowhere to go but up in selecting the new Treasury Secretary as Larry Summers and Tim Geithner were asleep at the switch when the crisis occurred and were there to help the banks and not service the taxpayers.
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