Salient to Investors:

Mohamed El-Erian at Pimco said:

  • Municipal debt is more attractive after the re-election of Obama. Investors should be careful of the long-end of the yield curve. TIPs are attractive.
  • Bernanke is likely relieved as he knows he has more scope to continue with his unusual activism. The Fed will continue to be investors’ best friend and maybe only friend at this stage.
  • You avoid a fiscal cliff through a mini bargain, not a grand bargain, meaning a contraction from 4 percent to 1.5 percent of GDP – it’s more likely that we will avoid the fiscal cliff.

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