Salient to Investors: Alan Higgins at Coutts said Osborne is limited and has to take from one hand to give to the other, and today’s statement is a small opening of the door for more monetary stimulus, though mainly a confirmation of business as usual. Higgins said the bigger news is
READ MORE... →Salient to Investors: Anika Khan at Wells Fargo Securities is optimistic about the housing recovery and sees construction picking up. Morgan Stanley expects residential construction to rise 14 percent in 2013. Jason Schenker at Prestige Economics said housing has huge upside potential for GDP and job creation and the only thing that’s going to drive the substantial improvement to
READ MORE... →Salient to Investors: Bernard Baumohl at Economic Outlook Group said America’s shadow economy – estimated by economists to be $2 trillion – may explain why retail sales have grown at an annual rate of 3.5 percent or more since September 2010. Over 30 percent of the unemployed have been out of work for
READ MORE... →Salient to Investors: The average strategists expects the S&P 500 to end 2013 at 1,571. Sean Darby at Jefferies sees 1673 at year end. Credit Suisse, Deutsche Bank, Goldman Sachs, and Morgan Stanley raised year-end estimates this week. Adam Parker at Morgan Stanley says it is hard to see what causes a major market correction
READ MORE... →Salient to Investors: Hedge funds are the most bullish on 10-yr Treasuries since 2007. Jason Evans at NineAlpha Capital said it is expensive to fight the Fed – whether yields have begun a structural rise is the multibillion dollar question. Evans says the cost of being under-invested in Treasuries eats you
READ MORE... →Salient to Investors: Argentines are buying more gold than ever to preserve the value of their savings as economists forecast the peso will depreciate 12.9 percent through year-end and the government bans most dollar purchases. Sebastian Porcel at Global Agro said investors see gold futures as a good option to dollarize their portfolios.
READ MORE... →Salient to Investors: Simon Johnson at MIT writes: US rates on government debt are very low, the dollar is not depreciating rapidly, and inflation seems stable – no imaginable circumstance under which the US would need to borrow from the IMF. Thomas Jefferson was obsessed with the idea that debt was bad
READ MORE... →Salient to Investors: Harry Dent and Rodney Johnson write: We are entering the last stage of the 80-year New Economy Cycle Commodities topped in 1920, 1951 and 1980. The spending cycle is 39 years and the commodities cycle is 30 years. Gold will fall to $750 The US economy will
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs says: China equities are very cheap and are the best place to be in 2013. Don’t expect draconian tightening in China as inflation last year was way below their target and the government has been careful not to stimulate economy too much and are doing a good
READ MORE... →Salient to Investors: Mohamed El-Erian at Pimco said: The Fed’s record monetary stimulus has forced central banks from Mexico to Brazil to Korea to Japan to follow suit as artificially low US interest rates has put upward pressure on several currencies, threatening the competitiveness of their economies. Central banks are carrying
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