Salient to Investors:

Binky Chadha at Deutsche Bank said the market had been pricing in that the Fed would normalize rates much more slowly than it has done historically, and the shock has spilled over across all of the asset classes.

The World Bank said the world economy will expand 2.2 percent in 2013 and the euro region will shrink 0.6 percent.

Seamus Mac Gorain at JPMorgan Chase expects the developed market sell-off to proceed at a far more measured pace over the remainder of 2013, while the position squaring in emerging markets has some way to go, not least because the degree of illiquidity in the sell-off has surprised.

Jeffrey Gundlach at DoubleLine Capital says the worst is over for Treasuries as stability returns to the stock and fixed-income markets.

Bill Gross at Pimco said bond yields and risk spreads were too low 2 months ago and the Fed tilted over-risked investors to one side of an overloaded and over-levered boat, so don’t panic.

Howard Ward at Gamco Investors said the markets needed to vent some steam and did, and Bernanke’s comments were seen as more hawkish than he expected.

In May, analysts cut 2013 earnings estimates for emerging-markets stocks by 3 percent, and raised estimates for MSCI developed-market companies 0.2 percent and 0.1 percent for the S&P 500.

Hayes Miller at Baring Asset Mgmt said we are not out of the woods, and while emerging markets are cheap relative to developed markets, earnings expectations continue to be downgraded fairly rapidly, while developed markets, particularly US and not so much Europe, are seeing upgrades.

Goldman Sachs, Morgan Stanley and Credit Suisse cut their gold forecasts in June as ETP holdings sank to a 3-year low. Societe Generale said investors may sell an additional 285 tons in 2013.

Georgette Boele at ABN Amro said gold does not generate income and is vulnerable to higher interest rates, while weaker data out of China and concerns about emerging markets have hurt the demand outlook.

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