Salient to Investors: Tomoya Masanao at Pimco said: Investors should be wary of high-yield borrowers as slowing growth in Asia threatens profitability. China will average 6 percent to 7.5 percent annual growth during the next 5 years versus 9 percent annual for the past 5. Companies in Asia outside Japan almost tripled junk bond sales
READ MORE... →Salient to Investors: Bill Gross at Pimco cut holdings of Treasuries but says the Fed is unlikely to reduce QE in the near-term, and says he is sticking with bonds as long as Fed does. Gross has been advising investors to sell riskier assets and buy government debt, including inflation-linked securities and nominal
READ MORE... →Salient to Investors: Overseas investors sold the most Indonesian shares since March 2011 as rising US Treasury yields lure capital from emerging markets. Read the full article at http://www.bloomberg.com/news/2013-06-12/indonesian-stocks-fall-as-investors-sell-most-shares-since-2011.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Goldman Sachs maintained its neutral recommendation on commodity prices, predicting a significant decline in agriculture in half2 even if summer weather is slightly worse than 2011. Jeffrey Currie and Damien Courvalin et al at Goldman predict the S&P GSCI Enhanced Index will return 2.3 percent over 12 months,
READ MORE... →Salient to Investors: Jim O’Neill said: The US is returning to normality so expect 10-yr T-yields to rise toward 4 percent in the next couple of years as the 30-year bull market in bonds comes to an end. There will be quite ugly days. The global economy is in the early stages of
READ MORE... →Salient to Investors: Jim O’Neill writes: When the Fed starts to taper, expect turbulence in financial markets, especially for overpriced assets. We are headed to a normal 10-yr T-yield of 4 percent or more versus 2.2 percent now, and to a return of the equity culture. mcd-grp.com/cat/ In 1994, Greenspan made it clear that
READ MORE... →Salient to Investors: Daniel Friedman at UC at Santa Cruz and author Daniel McNeill write: Bailouts suggests to most laypeople gifts to a giant, inefficient, highly connected octopus, but they are typically investments – loans or purchases. The US bailout of Chrysler made a $660 million profit and the nation
READ MORE... →Salient to Investors: China approved 2 domestic ETPs backed by gold as global holdings of the precious metal in ETPs dropped to a 2-year low. Zhang Bingnan at the China Gold Association said Gold ETFs should boost gold demand as they make Chinese investments in the bullion much easier, and the recent
READ MORE... →Salient to Investors: Standard & Poor’s said: It increased the US’s AA+ credit rating outlook to stable from negative based on receding fiscal risks, and the US has a less than 1-in-3 likelihood of a downgrade in the near term due to tentative improvements like the deal to avoid the
READ MORE... →Salient to Investors: S&P said the U.S. has a less than 1-in-3 likelihood of a downgrade of its AA+ credit rating in the “near term”, and sees tentative improvements including the deal to avoid the fiscal cliff. Demand for Treasuries at auction has slackened amid signs of improvement with the
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