Salient to Investors: David Sowerby at Loomis Sayles it’s a tug of war between the fiscal cliff and global monetary easing – most bullish is valuation and an accommodative Fed. The average analyst expects capital spending by S&P 500 companies to drop 1.3 percent in 2013 after 3 years of growth. Bears say the last decline was at
READ MORE... →Salient to Investors: Corporate bond sales are $3.9 trillion in 2012 versus $3.29 trillion in 2011 and $3.23 trillion in 2010, and the previous all-time high of $3.89 trillion in 2009. EPFR Global report a record $455.7 billion has flowed into bond funds in 2012. Corporate bonds returned 11.5 percent in 2012 versus 4.86 percent in
READ MORE... →Salient to Investors: The National Conference of State Legislatures said half of all U.S. states have returned to peak tax-collection levels last seen before the recession five years ago, or will soon. In the preceding two recessions, it took 2 years or less for revenue to return to previous peaks. Corporate income-tax
READ MORE... →Salient to Investors: Trading in US equity markets is spread across 13 stock exchanges and 50 dark pools. A third of US volume occurs away from exchanges. Justin Schack at Rosenblatt Securities said that from 2008 through 2010, big banks expanded their dark pools by using them as the first destination to
READ MORE... →Salient to Investors: We know we carry too much credit card debt, own too little retirement savings. Our confidence in our abilities to live on our meager nest eggs is far too high, and our emergency reserves too low. Schools don’t teach money management skills, despite their importance. Parents don’t hand down any money managing skills.
READ MORE... →Salient to Investors: Nassim Nicholas Taleb says: Black Swan effects are necessarily increasing as a result of complexity, interdependence between parts, globalization, and the efficiency that makes people sail too close to the wind. We must make our public and private lives less vulnerable to randomness and chaos, but also “antifragile” — positioned to
READ MORE... →Salient to Investors: Gary Shilling at A. Gary Shilling & Co writes: Long-term India will emerge as the more significant global economy than China. About China: Much of its growth before 2008 came from a shift in global manufacturing from Europe and the US, and not by domestic-oriented activity. Its economy remains export-driven – consumers account
READ MORE... →Salient to Investors: David Ning at MoneyNing recommends the following to combat inflation in retirement: Buy a home which fixes your monthly payment for decades. Find lower-cost alternatives to replace what you enjoy. Skip some expenses regularly like by stopping the TV bills for a few months. Limit lifestyle inflation. Buy
READ MORE... →Salient to Investors: Allan Conway at Schroder Investment Mgmt said: Emerging-market equities will return as much as 20 percent in 2013 as consumers drive growth, leaving them less reliant on the US and Europe. India and China will drive economic growth among developing nations in 2013 The increasing relative resilience of emerging
READ MORE... →Salient to Investors: David Chalupnik at Nuveen Asset Mgmt said market fundamentals are looking better. Scott Minerd at Guggenheim Partners said the fiscal cliff is creating value in equities as too much negativity is priced in – the fiscal cliff is a non-event. Steven Milunovich at UBS cut his price estimate for Apple to $700 from
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