Salient to Investors: Tech, energy and financial stocks are the most inexpensive industries in the S&P 500 with multiples of less than 14 times earnings. US tech stocks, the second-best industry of the past decade, are at 13 times projected earnings, the lowest level versus the S&P 500 in at least 7 years. Analysts
READ MORE... →Salient to Investors: Chad Morganlander at Stifel Nicolaus there is a positive tone to the market in part because of belief that the Fed will continue to press on the gas. 74 percent of the 273 S&P 500 companies so far reporting beat earnings estimates, 55 percent missed sales estimates.
READ MORE... →Salient to Investors: Fareed Zakaria said: The World Bank says that in 1981 nearly half the world’s citizens were poor, while today, less than a fifth lives in poverty – from 2 billion to 1.2 billion people. Chinese poor declined by nearly 680 million people in the last three decades,
READ MORE... →Salient to Investors: Carmen Reinhart and Kenneth Rogoff at Harvard acknowledged on April 17 that they had inadvertently left some data out of their calculations in “Growth in a Time of Debt”, but the error did not change their basic findings that countries with public debt in excess of 90 percent of GDP suffered measurably
READ MORE... →Salient to Investors: Americans are allocating a smaller share of their spending to investment-related fees since the recession, a sign they are still wary of returning to financial markets. Stuart Hoffman at PNC Financial Services said people are shying away from stocks since the recession and have not really re-engaged in
READ MORE... →Salient to Investors: Terry Sandven likes the risk reward for equities but says it’s a ride the highs, buy the dips market. Frederic Dickson at D.A. Davidson said investors are tiptoeing in to figure out if it’s too hot or too cold. The majority of economists expect the Fed will lower
READ MORE... →Salient to Investors: Douglas Swanson at JPMorgan Chase said Fed tapering is not going to happen too early, and on recent data, that’s a lot less likely to happen in 2013. Swanson said Bernanke has been consistent and more aggressive than the market anticipates. Dan Greenhaus at BTIG said investors are not convinced
READ MORE... →Salient to Investors: Ben Inker writes: Capitalism should cause the return on capital to be in line with the cost of capital, and assets with similar risks should offer similar long-term returns. Equities should trade at replacement cost, and the long-term return to equities should be approximately the same as
READ MORE... →Salient to Investors: Graham Bishop at Exane BNP Paribas said market psychology has firmly bought into the prospect of policy escalation, and poor economic data is reinforcing such expectations – liquidity strength trumps growth weakness. Read the full article at http://www.bloomberg.com/news/2013-04-26/european-stocks-post-biggest-weekly-gain-in-five-months.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Jeremy Grantham writes: The world, in its reckless use of resources and natural systems, shows many of the indicators of potential failure that brought down many prior civilizations. However, we have two saving graces that may save us – declining fertility rates and progress in alternative energy.
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