International Buying of U.S. Assets Plunges on Europe Optimism – BLoomberg 11-15-12

Salient to Investors: Net buying of long-term US equities, notes and bonds totaled $3.3 billion in September versus $90.3 billion in August and versus the median economist estimate of $50 billion. Millan Mulraine at TD Securities said the slowdown was due in part to the improvement in global sentiment towards Europe,

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Profit Disappointments Show No Rousseff Bounce: Corporate Brazil – Bloomberg 11-16-12

Salient to Investors: Q3 earnings of 58 percent of 62 companies on the Bovespa index missed analysts’ estimates versus 62 percent that missed in Q2 and 60 percent that  missed in Q1. 67 percent reported sales higher than expected – Rodolfo Amstalden at Empiricus Research said the divergence is in part due to increasing costs in a tight labor market. Analysts

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Soros Joined Och-Ziff Betting on AIG Before Sandy Struck – Bloomberg 11-15-12

Salient to Investors: George Soros and Och-Ziff Capital Mgmt added stakes in AIG in Q3. Daniel Loeb at Third Point and Richard Perry at Perry Capital reported AIG stakes in Q3. Josh Stirling at Sanford C. Bernstein said primary insurers are trading at levels well off recent highs. Read the full article at http://www.bloomberg.com/news/2012-11-15/soros-joined-och-ziff-betting-on-aig-before-sandy-struck-u-s-.html

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Goldman Says Asian Bond Market May Face Bubble on Inflows – Bloomberg 11-15-12

Salient to Investors: Owi Ruivivar at Goldman Sachs Asset Mgmt said: If surging demand continues for Asian bonds and distorts prices for a long period of time, the likelihood of asset bubbles increases because prices do not fully reflect economic fundamentals. Supply and demand have become the dominant drivers of bond valuations rather

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Berkshire Buys Deere Stake for Buffett Aides’ Portfolios – Bloomberg 11-15-12

Salient to Investors: Berkshire Hathaway disclosed a stake in Deere, Precision Castparts, and Wabco Holdings and cut consumer products stocks including Johnson & Johnson and Procter & Gamble in Q3. Berkshire has been reducing holdings of consumer-products stocks in 2012. Eli Lustgarten at Longbow Research  said there is a massive need to increase productivity in the world’s farm

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Dollar Index Faces Ending Diagonal Triangle: Technical Analysis – Bloomberg 11-15-12

Salient to Investors: MacNeil Curry at Bank of America Merrill Lynch said an Ending Diagonal Triangle trading pattern indicates the 2-month rally in the US Dollar Index is poised to end. The Ending Diagonal Triangle indicates a weakening trend that is on the verge of reversal. Read the full article at http://www.bloomberg.com/news/2012-11-15/dollar-index-faces-ending-diagonal-triangle-technical-analysis.html

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Vanguard Takes Aim at U.K. as Fees Replace Commissions – Bloomberg 11-15-12

Salient to Investors: From January 1, 2013, UK advisers will be banned from accepting commissions from asset managers and instead charge clearly delineated fees. In 2009, the Review of Financial Studies said the cost of investing in British funds is higher than anywhere in the developed world aside from Scandinavia and Canada – and average 2.21 percent of

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China’s Leadership Change Will Help Stocks, Robeco’s Mio Says – Bloomberg 11-15-12

Salient to Investors: Victoria Mio at Robeco Hong Kong said China’s leadership change removes the biggest overhang for the nation’s equities as the new government is determined to carry out reforms. Mio said implications on the economy are neutral near term as China is expected to maintain the current monetary and fiscal policies. Barclays

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