Salient to Investors: 70 percent of S&P 500 companies have beaten analysts’ estimates this quarter. Dow fluctuations this year are the smallest in an election year since 2004, and less than the 112-year average when the incumbents won (13 of 17) and lost (6 of 11). Volatility declines indicate less concern that prices will
READ MORE... →Salient to Investors: David Sowerby at Loomis Sayles said earnings continue to surprise on the upside, plus a slight improvement in manufacturing. 71 percent of S&P 500 companies beaten analysts’ quarterly estimates. Darrell Cronk at Wells Fargo Private Bank said the consumer is showing he is willing to jump back in and seek out a job. Thomas
READ MORE... →Salient to Investors: Graham Bishop at Exane BNP Paribas said equities will advance in 2013 as investors who missed this year’s gains try to chase the rally, driven by a reversal of investor pessimism, near-zero US interest rates, accelerating economic growth, and favorable market valuations. Bishop said this phase of the cycle supports a strong
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Investment is not being incentivized by QE. Lower interest rates are being used to consume as opposed to invest, and the money created and freed up is elevating asset prices, but corporations are not investing in future production. Asset and currency prices ultimately rest on economic growth, so
READ MORE... →Salient to Investors: John Haynes at Investec Wealth & Investment said markets are fine where they are and people are underestimating the positive momentum that is building. Earnings have exceeded projections at 72 percent of companies that have released Q3 results, while sales have trailed estimates at 60 percent. Read the full article at
READ MORE... →Salient to Investors: Profit margins had their first 12-month contraction since 2009 leaving investors increasingly dependent on economic growth to boost stocks. Bears say stagnant profitability accompanied recessions in 2000 and 2007. Bulls say housing and employment data indicate an accelerating economy and valuations are low. Russ Koesterich at BlackRock said margins collapse when
READ MORE... →Salient to Investors: Jim Goff at Janus writes: Only invest money you won’t need for five to 10 years, set it and forget it. Australia has the best such plan with its mandatory retirement fund contributions of 9% of salary – assets now exceed Australian GDP and the Australian stock market. Bad headlines are the
READ MORE... →Salient to Investors: Masaru Hamasaki at Toyota Asset Mgmt said: Investors expect further BOJ stimulus but are also losing hope that big enough steps will be taken. Japanese shares are outperforming versus overseas markets because the yen’s strengthening trend has eased. The 2 percent growth of US GDP was certainly good as the headline,
READ MORE... →Salient to Investors: Dale Roberts writes: Very few middle class investors will retire due to the money generated from their investment portfolio or their investment philosophy. The stock market is mostly long periods of losing money against inflation, punctuated by two rabid bull markets that led to extreme overvaluation. Regularly, US equity
READ MORE... →Salient to Investors: Mercenary Trader writes: The routine intervention of the Central Banks, the Greenspan Put transitioning to the Bernanke Put, have underscored the “bad news is good news” phenomenon. Good news is good news because things are getting better. Mediocre news is good news because it means CBs keep rates near
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