Salient to Investors: FRB Governor Jeremy Stein sees a significant pattern of reaching-for-yield behavior emerging in corporate credit, which bodes ill for expected returns to junk bond and leveraged-loan investors. David Tawil at Maglan Capital said the bulls will continue to run despite the loud chorus that this is crazy because there’s nowhere else to put
READ MORE... →Salient to Investors: James Gaul at Boston Advisors said Fed liquidity is driving financial asset inflation. Read the full article at http://www.bloomberg.com/news/2013-01-03/buffett-like-icahn-reaping-tank-car-boom-from-shale-oil.html. Click here to receive free email alerts of articles as soon as they are posted.
READ MORE... →Salient to Investors: Fears a year ago of break-up of the euro zone and bank disasters did not happen. The S&P 500 gained 13 percent for the year. Stand outs were financial and consumer discretionary stocks, while health care and consumer staples were the only sectors in the US and Europe
READ MORE... →Salient to Investors: Paul Krugman said to some extent we are hurt by Chinese growth since we compete for limited supplies of oil, minerals, etc. The U.S. needs to give China more of a voice in trade policy because the alternative is much less appealing. China is the largest polluter in
READ MORE... →Salient to Investors: Robert Gates said: While ground forces will undoubtedly get smaller, we must not get fixed on the idea that high technology is the only answer to military challenges. “No matter how a war starts it always ends in mud” – General Stillwell WWII Pentagon bureaucracy is structured to plan for
READ MORE... →Salient to Investors: Nassim Taleb writes: (Excerpted from “Antifragile: Things That Gain From Disorder”) Imagining future technologies is unpredictable and won’t be the ones that make it. The futuristic projections made throughout the past 150 years by Jules Verne, H. G. Wells, George Orwell and other scientists and futurists are not tools
READ MORE... →Salient to Investors: The OECD said: Failure to prevent the fiscal cliff would increase the risk of a global recession. The greatest threats to the world economy lie in the euro area, whose debt crisis urgently need fixing. Reducing the large federal budget deficit is necessary to restore fiscal sustainability, but should be done gradually
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