Salient to Investors: Freddie Mac said the average rate for a 30-yr fixed mortgage rose to 4.46 percent, the biggest one-week increase since 1987. Freddie Mac said rates would have to rise to 7 percent before a home at the US median price would be unaffordable to a family with median
READ MORE... →Salient to Investors: Property purchases by U.S. REITs are likely to be curtailed as a tumble in share prices makes a key source of capital costlier. Jim Sullivan at Green Street Advisors said for most property types, we have hit the pause button and expect REIT executives to be very careful with respect
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. writes: Short stocks and commodities, go long the dollar and Treasuries – if stocks continue to decline, the safety of Treasuries and investment-grade bonds will outweigh concerns about the end of QE. World economies are growing slowly at
READ MORE... →Salient to Investors: Jim Rogers says we are getting to that point where either central banks are going to stop the money printing, or the market will force them to stop it, or a healthy convergence of both. Rogers says if it is not ending now, it will end sometime
READ MORE... →Salient to Investors: Borrowing costs for Chinese banks have surged the most in at least 6 years. Three of the largest rating agencies warn that banks may run out of cash to pay investors in their wealth management products and to extend new loans, increasing the risk their customers will
READ MORE... →Salient to Investors: Henry Paulson at the Paulson Institute said: Phasing out QE will cause market volatility and pain because there is never a neat, elegant solution that is totally painless or without a cost to a big, ugly problem – some market participants are addicted to these abnormally low interest rates. The US
READ MORE... →Salient to Investors: Donald Selkin at National Securities said when the market gets into a trend, people want to follow it, and now we’re in a severe downtrend, so the psychology is terrible, and if any of the big holders that are still in the SPDR Gold Trust start are forced to
READ MORE... →Salient to Investors: Frederic Neumann at HSBC said: Asia’s growth has just downshifted to a less spectacular pace in coming years. Asia’s 1997 financial crisis won’t repeat as dissimilarities outweigh the parallels. Current account positions are mostly in surplus, which should cushion the blow from an outflow of capital, and banking systems
READ MORE... →Salient to Investors: Bond managers are telling investors the worst may be over for T-bonds after 10-year yields rose to a 22-month high. Jeffrey Gundlach at DoubleLine Capital says July will not be the same type of month and 10-yr yields will be meaningfully lower by the end of 2013 Gundlach said
READ MORE... →Salient to Investors: Boston Consulting says Mexico is beginning to beat China as a manufacturing base despite its higher crime rate: a plus for the US because Mexican factories use 4 times as many American-made components as Chinese factories do. Mexico’s 4 key advantages: Manufacturing wages, adjusted for Mexico’s superior worker
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