Salient to Investors: Fund Gurus write: Market corrections have been short lived due to periods of high volatility and not underlying fundamental issues. Stocks are very attractive. Values are in line with historical 10-yr average but companies have strengthened their balance sheets and are positioned for further revenue growth. Many
READ MORE... →Salient to Investors: Regional lenders were the primary source of loans for landlords buying properties before the real estate collapse crash. Since then, at least 475 banks have failed and larger banks have tightened mortgage underwriting standards and are focusing on the biggest investors. Home prices are 29 percent below the 2006 peak. Millions of
READ MORE... →Salient to Investors: Nouriel Roubini writes: For the next year or so, as long as the economy grows 1.5-2%, and you have easy money, the market can go higher. Growth is slow, earnings growth is slowing down. both top and bottom lines are not as good as they were, but
READ MORE... →Salient to Investors: Peter Jankovskis at Oakbrook Investments says the market has built a nice base, gotten through earnings season, and is in the phase where economic reports will determine if it can hold up. 86 percent of S&P 500 stocks trade above their 50-day moving average, the highest level
READ MORE... →Salient to Investors: Stephen Burd at the New America Foundation found almost two-thirds of private colleges for the 2010-2011 school year required students from families making $30,000 or less annually to pay more than $15,000 a year. 11 percent of students at Harvard and 14 percent at Yale received Pell
READ MORE... →Salient to Investors: Scott Black at Delphi Management expects the S&P 500 to rally further on continued Fed stimulus, S&P 500 earnings that will reach $105 a share in 2013, and no returns from fixed-income. Black said we are not even near unemployment below 6.5 percent. The average equity strategist predicts the
READ MORE... →Salient to Investors: 5 of the 10 best-paid CFOs in 2012 worked in tech. The average effective tax rate for S&P 500 companies in 2012 was 41 percent versus less than 30 percent for the 9 tech companies with CFOs who ranked among the 25 highest-paid last year. The US
READ MORE... →Salient to Investors: Berkshire Hathaway sold 5-yr and 30-yr securities offering the company’s lowest coupons for those maturities ever, while it has reduced its bond investments and corporate debt in the last 3 years, while fixed-income investments excluding mortgage-backed debt due in 1 year or less has grown to 25 percent
READ MORE... →Salient to Investors: Hedge funds using debt-trading strategies are expanding at a record pace as they profit from risks big banks are no longer taking. Roy Smith at NYU said regulators in the US and Europe want to transfer risk to the shadow-banking system and interferes capabilities of the large banks
READ MORE... →Salient to Investors: Larry Fink at BlackRock says investors should be heavily invested in equities due to its fair value at a 15.5 P/E ratio for the S&P 500 and good earnings season. Jeffrey Gundlach at DoubleLine said in mid-April that he expects a catastrophic failure because the developed world
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