Salient to Investors: Ethan Harris at Bank of America Merrill Lynch said central bank actions have clearly been a major factor in the market rally. Larry Kantor at Barclays said a modestly growing economy with depressed cyclically sensitive sectors is a relatively stable and safe environment, and when combined with a central bank
READ MORE... →Salient to Investors: Investors will soon be more concerned about missing out on the rising markets than preparing for the next leg of the bear market. Gold will make a serious run at $2,000. Short-selling is a great strategy but risks mandatory buy-ins. Read the full article at http://seekingalpha.com/article/890301-how-to-prepare-for-the-bear?source=intbrokers_regular
READ MORE... →Salient to Investors: Equity markets will trend higher even if economic activity continues slow for a prolonged period. Any market correction over 10% is a buying opportunity. Asset markets are critical in the current environment and markets will not crash or collapse for the foreseeable future. The banking system has been flooded with enough
READ MORE... →Salient to Investors: Expect the market to consolidate before the next QE-driven euphoric market advance. The market does not necessarily react immediately to liquidity-driven catalysts. Stocks traded higher for nine days after Lehman collapsed before the sell off began. Stocks initially trade lower once they receive QE from the Fed. A slowing global economy,
READ MORE... →Salient to Investors: Brian Belski at BMO Capital says: Target S&P500 at 1425 year-end so taking money off table, sees short-term volatility due to noisy election cycle. Sees no correction or bear market but a pullback near term to 1400. Target S&P500 of 1575 for 2013. Longer term bottom in housing in place and this stabilisation is good
READ MORE... →Salient to Investors: Smaller stocks are outperforming larger stocks in 2012. Top sector is healthcare, followed by consumer discretionary, telecom and financials. Bottom is utilities, followed by energy, industrials, technology, consumer staples and materials. Read the full article at http://seekingalpha.com/article/884011-best-performing-russell-3-000-stocks-and-sectors-in-2012?source=intbrokers_regular
READ MORE... →Salient to Investors: Morningstar reported that investors withdrew $300 billion net from actively managed U.S. equity stock funds in the 3-yr period through July 31, while buying a net $140 billion of passively managed funds and ETFs, and bond funds took in $734 billion. $3 trillion-plus is invested in equity mutual funds and ETFs.
READ MORE... →Salient to Investors: The S&P 500 is at 14.9 times reported earnings versus average 16.3 since 1954. Read the full article at http://www.bloomberg.com/news/2012-09-21/s-p-500-snaps-two-week-rally-amid-global-economy-concern.html
READ MORE... →Salient to Investors: Options traders are paying record prices to protect against swings in long-term U.S. Treasuries relative to stocks amid concern inflation will accelerate. The ratio between implied volatility for contracts closest to the iShares Barclays 20+ Year Treasury Bond Fund and the SPDR S&P 500 ETF Trust reached the highest since
READ MORE... →Salient to Investors: The S&P 500 is at 14.9 times reported earnings versus the average 16.3 multiple since 1954. Michael Price at MFP Investors says the U.S. is the most attractive stock market because of the strength of corporate balance sheets, low interest rates and valuations. Price said it’s very early for European stocks. Read the
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