Salient to Investors: Goldman Sachs’ Multi-Strategy Investing team’s survival shows how Goldman Sachs has worked around regulations curbing proprietary bets at banks. Matthew Richardson at NYU said the law does not bar longer-term wagers so leaves room for other risky investments. Richardson said from a systemic-risk perspective, it’s longer-term holdings which are
READ MORE... →Salient to Investors: The era of increasingly cheap money is showing signs of ending in the mortgage bond market. Bill Gross at Pimco said bond investors should anticipate reduced returns as bets on mortgage securities are over in terms of the capital appreciation – expect total returns in 2013 of 3 to 4 percent. Brean
READ MORE... →Salient to Investors: Justin Urquhart Stewart at Seven Investment Mgmt said the coming year depends a lot on the German elections, and the end to the boom in the bond markets is a matter of when rather than if. The fudging of the fiscal cliff issue means a few more crises
READ MORE... →Salient to Investors: Rob Haworth at US Bank Wealth Mgmt said 2012 saw much liquidating by hedge funds, but there’s an incentive to reverse that because of growth in emerging markets and especially China – it’s going to be a good year for commodities. The median economist expects China to accelerate for at
READ MORE... →Salient to Investors: Crispin Odey at Odey Asset Mgmt said the UK lacks leadership. Odey said history doesn’t allow precise identification of inflection points, but to ignore its lessons dooms one to repeat its mistakes. Phil Irvine at PiRho Investment Consulting said the biggest risk is not to take a risk.
READ MORE... →Salient to Investors: Jay Schwister at Baird Advisors said Pimco underestimated how big the policy response would be and what type of positive impact it would have on financial markets, despite the new normal they forecast is playing out. Saumil Parikh at Pimco said policy distortions cannot continue indefinitely, so 2013
READ MORE... →Salient to Investors: The Shanghai Composite rose 3.2 percent in 2012 and trades at 9.9 times estimated earnings. Read the full article at http://www.bloomberg.com/news/2013-01-06/china-stock-rally-may-end-without-reform-shanghai-alliance-says.html Click here to receive free email alerts of articles as soon as they are posted.
READ MORE... →Salient to Investors: John Paulson said the euro would fall apart and bet against the region’s debt. Morgan Stanley predicted the S&P 500 would lose 7 percent and Credit Suisse predicted wider swings in equity prices. Warren Buffett called bonds dangerous. The largest banks and most-successful investors failed to anticipate how government actions would influence
READ MORE... →Salient to Investors: Joseph Tanious at JPMorgan Funds said the jobs report shows the labor market is healing very slowly, so not so good that the Fed might pull out of QE. Deutsche Bank said supply chain movements suggest iPhone and iPad production may be declining. Mohamed El-Erian at Pimco said 7.8 percent unemployment shows
READ MORE... →Salient to Investors: Obama and Congress are heading for an even bigger confrontation over raising the nation’s debt limit, yet US Treasury bond investors aren’t alarmed. Matthew Duch at Calvert Investments says the market is much more concerned about growth than if the US will be able to pay its bills. Zach
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