Salient to Investors: Bespoke Investment Group study going back to 1928 shows the S&P 500 Index has returned an average 0.12 percent in September when up year-to-date through August – the index is up 12 percent so far in 2012 Bob Janjuah at Nomura Holdings predicts a major risk-off phase in the coming four months with
READ MORE... →Salient to Investors: Berkshire Hathaway has been drastically reducing his exposure to stocks that depend on consumer purchasing habits, including Johnson & Johnson and Intel. John Paulson in Q2 2012 dumped 14 million shares of JPMorgan Chase, his fund’s entire position in Family Dollar and Sara Lee. George Soros recently sold
READ MORE... →Salient to Investors: Longest weekly DJIA rally since October, led by tech. Mark Freeman at Westwood Holdings says the market gets disappointed when it falls into the trap of not getting what it expects from the central banks – the fundamentals are what matters and they are doing OK. James McDonald at Northern Trust
READ MORE... →Salient to Investors: Louis Navellier says: Bill Gross couldn’t be more wrong in predicting lower future equity returns and that equities cannot return more than U.S. GDP growth because the stock market is much more attuned to earnings than to U.S. GDP growth. Nearly half of the S&P 500’s revenues are generated globally versus 30 percent 10
READ MORE... →Salient to Investors: Jeffrey Hirsch at Stock Trader’s Almanac writes: Presidential elections have a profound impact on the economy and the stock market. The last two years of the 44 administrations since 1833 produced a total net market gain of 724 percent versus the 273.1 percent gain of the first two years. Presidents
READ MORE... →Predictions: Ibbetson Associates said that the next 20 years are not likely to yield a bond bonanza, favors stock investing – the S&P 500 stock index will return an average 7.6 percent, and long-term government bonds 4.1 percent. Joseph Davis at Vanguard expects future bond returns to be muted, and stock returns formidable. Davis
READ MORE... →Salient to Investors: IPOs globally raised $41.3 billion, the worst Q2 since 2009, down 34 percent from a year ago – hurt by Europe, slowing Chinese growth, and Facebook’s drop. Asia saw its slowest Q2 for IPOs since 2009. The S&P 500 Index moved an average of 1 percent a day in June, about twice the rate
READ MORE... →Predictions: Bill Gross said: It will take economies and financial markets decades to normalize after the debt crisis, keeping U.S. securities the safest bet for investors. This is an authentic debt crisis and can only be ultimately cured by default or printing more money to inflate it away. A debt crisis can’t be cured with more debt
READ MORE... →Predictions: Binky Chadha at Deutsche Bank said: Economic reports are due to improve, lifting U.S. stocks. Investors are suffering from data disappointment that has become extreme by historical standards – the typical pattern from here would be for fewer negative surprises and then positive ones. Economic data has been the key driver of equities,
READ MORE... →Salient to Investors: Hank Smith at Haverford Trust sees the market bouncing along the bottom. Laura Martin at Needham said academic research shows that the greater the diversity on a corporation’s board, the higher the returns to shareholders. Sam Stovall at S&P said the lack of direction is understandable given investors await the outcome of the
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