Salient to Investors: Michael Riesner and Marc Mueller at UBS say the US bull market may rise to 1,570 on the S&P 500 and then end in 2013, followed by a cyclical bear market and drop of up to 30 percent by 2014. They say the S&P 500 long-term bear market that began in
READ MORE... →Salient to Investors: The 20 stocks with the highest short sales in the S&P 500 rose an average of 5.1 percent in December versus 0.7 percent for the Index, the widest performance gap since January 2012. Equities tend to rally when companies with the most short interest outperform – like in
READ MORE... →Salient to Investors: Jay Schwister at Baird Advisors said Pimco underestimated how big the policy response would be and what type of positive impact it would have on financial markets, despite the new normal they forecast is playing out. Saumil Parikh at Pimco said policy distortions cannot continue indefinitely, so 2013
READ MORE... →Salient to Investors: John Paulson said the euro would fall apart and bet against the region’s debt. Morgan Stanley predicted the S&P 500 would lose 7 percent and Credit Suisse predicted wider swings in equity prices. Warren Buffett called bonds dangerous. The largest banks and most-successful investors failed to anticipate how government actions would influence
READ MORE... →Salient to Investors: James Gaul at Boston Advisors said Fed liquidity is driving financial asset inflation. Read the full article at http://www.bloomberg.com/news/2013-01-03/buffett-like-icahn-reaping-tank-car-boom-from-shale-oil.html. Click here to receive free email alerts of articles as soon as they are posted.
READ MORE... →Salient to Investors: The MSCI All-Country World Index of equities increased 16.9 percent in 2012 including dividends, versus 0.1 percent for the S&P GSCI Total Return Index of 24 commodities, 0.5 percent for the US Dollar Index, and 5.73 percent for the Bank of America Merrill Lynch Global Broad Market Index. James Dunigan at PNC Wealth
READ MORE... →Salient to Investors: Laszlo Birinyi at Birinyi Associates expects the fourth and final stage of the bull market to take the S&P 500 to a record high in 2013, driven by capitulating bears, individual investors piling in, US housing continuing to expand, and markets rallying in Europe. Birinyi said this 4-year bull market resembles the bull markets in the
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Stocks and bonds will return less than 5 percent in 2013 due to a sluggish economy as the effect of Fed stimulus diminishes Structural headwinds lower real GDP to below 2 percent in the US and other developed nations. Bernanke is not Rumpelstiltskin and can
READ MORE... →Salient to Investors: Economists expect the 10-yr Treasury yield to end 2013 at 2.17 percent. Bill Gross at Pimco expects Treasury 5-yr notes to yield 0.7 percent at the end of 2013 versus 0.72 percent today, and the dollar to decline and oil climb above $100 in 2013. Gross expects stocks
READ MORE... →Salient to Investors: US government securities have returned 2 percent in 2012 versus 17 percent for the MSCI All-Country World Index including reinvested dividends. Hiroki Shimazu at SMBC Nikko Securities expects investors to shift money from the bond market to the stock market in 2013 as the economy becomes much stronger. Economists expect 10-yr yields to rise
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