Salient to Investors: TrimTabs Investment Research and the Money Fund Report report bond funds saw $61.7 billion of withdrawals last week. Market bears say yields barely exceed inflation, leaving little relative value in bonds as the global economy improves. Pimco, BlackRock, and DoubleLine Capital say the worst is over because the
READ MORE... →Salient to Investors: Money managers reduced their net-long position in gold to the lowest since June 2007, while shorts climbed to the second-highest on record. ETP holdings are at a 3-year low. Banks from Goldman to Credit Suisse cut their gold forecasts last week. Mark Luschini at Janney Montgomery Scott said
READ MORE... →Salient to Investors: Fareed Zakaria said: Africa has become the great hope of the business world. The World Bank says Africa could be on the verge of a take-off the like of China’s 30 years ago. Populations are stagnating or declining in Europe, Japan and China, while Africa’s population of 1
READ MORE... →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
READ MORE... →Salient to Investors: Paul B. Farrell writes: 2014 is a virtually guaranteed disaster just waiting to ignite. Bubbles are everywhere. Kit Juckes at Societe Generale says all three worldwide financial bubbles in the last three decades – The Asian Bubble in the early ‘90s, Dot-com Bubble of the late ‘90s
READ MORE... →Salient to Investors: The median economist says payrolls grew by 165,000 workers in June after rising by 175,000 in May. Russell Price at Ameriprise Financial said the fact that the economy is growing as well as it seems to be, despite heavy headwinds, is testament to much-improved underlying fundamentals, and
READ MORE... →Salient to Investors: Stephen Bell and Dr. Hui Feng at the University of Queensland write: The current Chinese credit crunch differs markedly from those in the late 1980s and early 1990s, and shows China no longer relies solely on political and administrative controls, and is allowing market forces take a greater role. The
READ MORE... →Salient to Investors: Nisid Hajari writes: No Chinese firms rank among the 10 most valuable companies in the world by market value down from 5, all state-owned, in 2008. All top 10 are American – evidence of the US economy’s resilience and skill at reinvention. However, one good stock rally
READ MORE... →Salient to Investors: Jeffrey Lacker at FRB of Richmond said Financial markets will remain volatile as policy makers debate tapering, part of the process of incorporating new information into financial asset prices. Reaction to Bernanke’s comments is evidence that they had built-in expectations of more asset purchases than I think the
READ MORE... →Salient to Investors: Bank of America Merrill Lynch data show US bonds fell for a third quarter, the longest losing streak since 1999. goodwill there Larry Milstein at R.W. Pressprich said the rate move higher is all about Fed action and is overdone given the economy, but if the Fed is ready
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