Salient to Investors: Peter Sorrentino at Huntington Asset Advisors says the EU bailouts and US fiscal policy is enough reason to take risk off the table. Adam Parker at Morgan Stanley predicts the S&P 500 at 1,434 at yr-end 2013, saying the acuteness of issues such as the US deficit and debt levels, European crisis, and
READ MORE... →Salient to Investors; Bond bears are buying Treasuries despite less-than-inflation yields that are the least in three years. Even bears who aren’t buying don’t expect 10-yr note yields rising much above 2 percent. Donald Ellenberger at Federated Investors said Treasuries offer little real value, but for the short-term, it is just hard to
READ MORE... →Salient to Investors: Since 2008, at least 94 of the 400 people sued by regulators or charged with insider trading passed or received tips involving pharmaceutical, biotech or other health-care stocks. Read the full article at http://www.bloomberg.com/news/2012-11-27/harvard-doctor-turns-felon-after-lure-of-insider-trading.html
READ MORE... →Salient to Investors: Bruce Berkowitz at Fairholme Fund bets on the recovery of stocks that fall out of favor, especially recovering icons that trade at half of intrinsic value for reasons that have nothing to do with their prospects. Berkowitz prefers to focus on his best ideas rather than spread them out. Morningstar
READ MORE... →Salient to Investors: Khalil el-Anani at Durham University said the Mursi decrees were a big blow to the revolution, the transitional period and democracy and could have dire consequences on the political scene. Religare Capital Markets said the political instability will probably be resolved soon. The EGX 30 Index trades at 1.25 times book
READ MORE... →Salient to Investors: People make more rational decisions when money-related choices were posed in a foreign language that they had learned than when they were asked in their native tongue. People are more risk-averse when an impersonal decision is presented in terms of potential gain than when it is framed as a
READ MORE... →Salient to Investors: Simon Johnson at MIT Sloan School of Mgmt writes: William Dudley at FRB New York made it clear that 1) too big to fail remains with us. 2) The completed first round of living wills – potential liquidation plans by major financial institutions – has been unsatisfactory and 3) The legal mechanisms for an FDIC-managed
READ MORE... →Salient to Investors: Credit Agricole CIB said markets are pricing in an increasing likelihood that India’s credit rating will be cut to junk status. The median economist predicts Q3 GDP will increase 5.3 percent from a year ago. Sajjid Chinoy and Jahangir Aziz at JPMorgan expect full-year growth through March 2013 to be 5.6 percent, and 6 percent the following
READ MORE... →Salient to Investors: The extra interest rate paid by municipalities over companies has fallen 76 percent in 2012, the most since at least 1994, and the smallest since July 2009. Investors typically seek more yield from muni than from corporates because munis trade less frequently and feature annual financial disclosure instead of quarterly
READ MORE... →Salient to Investors: The S&P 500 gain for 2012 is at 12 percent. The S&P 500 has gained an average 0.6 percent during the week of Thanksgiving since World War II versus a 0.15 percent average gain in all calendar weeks. Brian Jacobsen at Wells Fargo Advantage Funds sees little downside even if we go
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