Salient to Investors:
Kenneth Heebner said the U.S. is poised to outperform most countries – lower growth in Asia and Europe will lower oil and commodity prices, a de facto tax cut for U.S. consumers. Heebner sees forces driving the U.S. in a positive direction – the real estate bust has created pent-up demand for housing that eventually will lead to another surge in building. Heebner was 21 percent in banks and 12 percent in airlines at the end of Q1.
Heebner says pessimism historically has been associated with maximum opportunity for investing – currently the enormous negative publicity about U.S. banks contradicts their improving fundamentals.
Heebner said he sees the mainstream in the distance.
John Taylor at FX Concepts says the U.S. is being dragged into recession by Europe.
Neel Kashkari at PIMCO says the U.S. economy is slowing, and unemployment is worsening.