Salient to Investors: The US economy will officially become 3 per cent bigger in July as government statistics take into account 21st century components such as film royalties and spending on R&D. Brent Moulton at the Bureau of Economic Analysis said the update was the biggest since computer software was added in 1999. The changes will
READ MORE... →Salient to Investors: Adam Nash at Wealthfront writes: Author Edward Chancellor found bubbles contain two ingredients, uncertainty and leverage. In almost every bubble, some form of innovation or insight forces people to rapidly debate the creation of new economic value. typically compounded by a lottery effect, exacerbating early pay-offs for
READ MORE... →Salient to Investors: Mohit Kamboj at Bombay Bullion Association said a rush in India to buy jewelry and coins will boost gold imports this quarter as traders and banks run out of inventory. The US Mint sold 153,000 ounces of American Eagle gold coins in April, the highest in almost three years. Tim Gardiner at
READ MORE... →Salient to Investors: Generally speaking, the stock market represents large corporations who can borrow cheaply from the bond markets and take advantage of low overseas tax rates. Small business can do neither of these things, despite being America’s most important job creators. The National Federation of Independent Business says this about
READ MORE... →Salient to Investors: Asian state-owned oil companies are making inroads in the contest for East Africa’s energy reserves. Fields off Mozambique are estimated to hold enough gas to meet global demand for 2 years. Brett Olsher at Goldman Sachs said state producers have a national interest initiative to secure significant
READ MORE... →Salient to Investors: Kenji Shiomura at Daiwa Securities said US housing starts are welcome after several disappointing economic reports, and today’s market advance is bigger than expected and investors on the sidelines are definitely looking to buy on dips. Ichiro Yamada at Fukoku Mutual Life Insurance said expectations for BOJ
READ MORE... →Salient to Investors: Bank of Canada Governor Mark Carney said economic slack will persist for more than two years and monetary stimulus will continue for a period of time. Derek Holt at Bank of Nova Scotia said the shine has started to come off the Canadian economy, and policy makers are signaling aggressively they
READ MORE... →Salient to Investors: Arne Rasmussen at Danske Bank said the outlook for the UK economy and the pound are bad and today’s jobs data is disappointing. Rasmussen says investors should not underestimate the possibility the BOE will act aggressively to support growth, and expects the pound to fall much further. Mike Amey
READ MORE... →Salient to Investors: Michael Franzese at ED&F Man Capital Markets said stocks are falling because everyone seems to see panic in the central banks when people thought there would be growth – a reversal of the beginning of the year when people thought higher rates were on the horizon, but there
READ MORE... →Salient to Investors: Kevin Caron at Stifel Nicolaus cites the slowing down in earnings improvement, so stocks need to pause as investors recognize that estimates are too high, or we need genuine economic improvement to justify stock valuations. 69 percent of the 55 S&P 500 stocks so far reporting have
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