Salient to Investors: David Stockman writes: The financial carrying capacity of the developed market economies has deteriorated since the 1980s; due to aging demographics, declining competitiveness v. emerging market economies, declining productivity growth, and the big increase in the leverage ratio against public and private incomes. The US’s ability to
READ MORE... →Salient to Investors: David Stockman writes: This central bank fueled boom will ultimately bring a prolonged deflationary contraction and day of reckoning for financial assets. During the 27 years of Greenspan’s Fed Chair term from 1987-2014: The Fed balance sheet grew 23 times. Buffet’s net worth grew 35 times, or 19 times adjusted
READ MORE... →Salient to Investors: Michael Lewis said: Charles Munger says high-frequency trading is the functional equivalent of letting a lot of rats into a granary. Electronic trading has rigged the market against ordinary investors, particularly in America, by allowing high-frequency traders to front run institutional investors and skim billions of dollars from the
READ MORE... →Salient to Investors: David Stockman writes: Chris Rupkey at MUFG Union Bank says consumers have emerged from the winter blues and if they spend anywhere as great as they feel, the economy will roar over the next few months. Rupkey and others have been expecting a roaring economy for several years but are
READ MORE... →Salient to Investors: David Stockman writes: Emerge Energy Services’s parabolic rise from its IPO and absurd valuation demonstrates the momo play by robots, day traders and flavor-of-the-month hedge funds in a stock market that has been destroyed by the Fed. Emerge is a poster boy for the irrational exuberance that has become institutionalized
READ MORE... →Salient to Investors: Sarah Ketterer at at Causeway Capital Mgmt said: Buying energy stocks very incrementally as oil prices eventually reach a floor and rise again but no idea when. Looks for companies with tremendous financial strength that can continue to pay dividends. Smart companies will use their balance sheet strength to buy
READ MORE... →Salient to Investors: Harvard Endowment initiated positions in Texas-based oil and gas companies in Q3, increasing its energy position to about a third of US public equity holdings, second only to health care. Stanford invested in fossil-fuel companies in Q3. Read the full article at http://www.bloomberg.com/news/2014-11-17/harvard-added-texas-energy-companies-during-third-quarter.html Click here to receive free and immediate email alerts
READ MORE... →Salient to Investors: Jonathan Glionna at Barclays said: There is insufficient data not enough data – only 21 observations in the last 86 years – to expect a repeat of stocks’ habit of rallying after midterm elections – a median 7% in the 90 days following, with a range of
READ MORE... →Salient to Investors: Regular investors, especially those saving for retirement, have an advantage over the professionals because they can afford to be patient and buy extra when stocks drop – “Be fearful when others are greedy, and greedy when others are fearful” – Warren Buffett. David Santschi at TrimTabs Investment
READ MORE... →Salient to Investors: Investors still believe that whenever stocks and risk assets fall, the authorities will act to limit the losses to ensure they don’t take economies down with them. Hans Redeker et al at Morgan Stanley said comments last week by Bullard and Haldane left markets with the impression
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