Salient to Investors: Jeffrey Gundlach at DoubleLine Capital said: Equities won’t repeat the poor performance of 2000 to 2010, when the S&P 500 fell 14 percent. Equities are superior to fixed-income as an inflation hedge. Stocks’ unpopularity is positive. The S&P 500 isn’t cheap – the Chinese stock market is better value. Mutual-fund investors withdrew $313 billion from U.S.
READ MORE... →Salient to Investors: In a Bloomberg poll of 847 investors, analysts and traders: A quarter expect Chinese markets to be among the worst performers over the next year. 46 percent, the highest, say U.S markets offer among the best returns over the next year. 18 percent expect commodities to offer the highest
READ MORE... →Salient to Investors: The S&Ps 500 Index is closer to a record than any other major stock market. Laszlo Birinyi expects more gains as bearish investors give up excuses of no volume and the belief that earnings aren’t going to be good, and start buying. Birinyi is surprised by the market’s strength and breadth. Byron Wien at Blackstone said everybody
READ MORE... →Salient to Investors: S&P 500 Index at highest since 2008. The Dow at highest since December 2007. Dan Veru at Palisade Capital Management said we are peeling away the uncertainties little by little, and Draghi is serious about putting Europe on a positive path. David Pearl at Epoch Investment Partners said the U.S. data is moving positively and we’re
READ MORE... →Salient to Investors: Pimco’s Bill Gross said: Investors face an age of inflation, a headwind for both stocks and bonds. The cult of equity was dying, and long-term equity returns of 6.6 percent above inflation – the Siegel Constant – won’t be seen again. Institutional investors will find the highest returns in countries with faster growth
READ MORE... →Salient to Investors: BlackRock said rising life expectancy is pressuring the elderly to seek higher investment returns, trumping the past wisdom of moving into fixed income which was valid when life expectancy was much lower. High-quality bonds yield almost nil because of risk-aversion, so won’t make savings last longer after retirement – e.g. German 2-year government bonds yields fell
READ MORE... →Salient to Investors: Profits are moving U.S. equity prices the most since the bull market began 3 1/2 years ago. Profits exceeded estimates by 4.5 percent on average in Q2 versus 6.2 percent in Q1. Chris Hyzy of U.S. Trust predicts S&P 500 profits will reach $100 a share in 2012 versus the $103.1 average
READ MORE... →Salient to Investors: September is the only month to drop on average since the 1920s. S&P 500 companies are headed for record earnings in 2012 but Q2 earnings were the weakest in three years. Analysts expect 2012 earnings of $103.18, down from $105.27 at the start of the year: expect 2013 earnings at
READ MORE... →Salient to Investors: Profits are moving U.S. equity prices more than any time since the bull market began 3 1/2 years ago. Bloomberg data show: S&P 500 companies rose or fell an average of 4.4 percent the day after releasing results since July. Daily swings in the index narrowed to 0.4
READ MORE... →Salient to Investors: John De Clue at U.S. Bank Wealth Management said Europe continues to weaken. Stephen Wood at Russell Investments said the Fed is showing high sensitivity to the labor market. Brian Peery at Hennessy Funds said it doesn’t take much to push the market toward the negative side Read the full article
READ MORE... →