Salient to Investors: Peter Orszag at Citigroup writes: A growing body of academic studies warns that economic growth in China might slow substantially in the decades to come. Past growth has been driven disproportionately by workers moving from farms to factories, but those economic gains are over – the Lewis turning
READ MORE... →Salient to Investors: JPMorgan Chase said the drop in the yield on 10-yr Treasuries below 1.7 percent indicates investors expect GDP to fall 0.3 percent next year as the fiscal cliff takes effect. Terry Belton at JPMorgan Chase continues to believe that Congress avoids the fiscal cliff. Priya Misra at Bank of America Merrill Lynch
READ MORE... →Salient to Investors: Saumil Parikh at Pimco said equities will return an annualized 4 percent to 5.1 percent over the coming 5 to 10 years verus their historical rate of almost 10 percent as the economy grows at a slower pace due to more retirees than workers and productivity decline due to less
READ MORE... →Salient to Investors: Home Depot Q3 profit topped analysts’ estimates. The US housing market is healing, with new-home sales rising to the fastest pace in two years and construction starting at the fastest rate in four years. Americans’ real estate holdings have risen in value for two straight quarters. CoreLogic said over
READ MORE... →Salient to Investors: Hispanics are the fastest growing component of America’s workforce, yet over 80 percent of Latinos ages 25 and older don’t have a bachelor’s degree, and the unemployment rate for Hispanics was 10 percent in October versus 7.9 percent nationally. The National Center for Education Statistics says 14 percent of Hispanics ages
READ MORE... →Salient to Investors: David Goel at Matrix Capital Mgmt said DeMark’s algorithms are much more predictive than any other system. Tom DeMark’s says fundamentals do matter, and markets are governed by waves that crest and fall based on Fibonacci numbers and the closely related golden mean, or golden ratio 1.618. DeMark can’t explain why his
READ MORE... →Salient to Investors: Markets are awash in insider trading, and healthcare has been particularly hard-hit since it offers illegal traders more opportunities to profit than the finance and technology sectors. Health companies can live or die on the results of drug trials and the industry has undergone significant consolidation. What’s notable about
READ MORE... →Salient to Investors: Marc Faber of The Gloom Boom and Doom Report says 200 million people in SE Asia will be linked by road and rail and the region can easily grow 6-7 % per annum for the next 10 years. Faber’s concern in Asia is the political development – the military will
READ MORE... →Salient to Investors: Older people are growing and are more likely to forgo purchases of houses, cars and other big-ticket items that the Fed is trying to encourage with near-zero interest rates. William C. Dudley at FRB of New York said spending by older age people is less likely to be easily stimulated by
READ MORE... →Salient to Investors: IEA Chief Economist Fatih Birol said: The U.S. will be the largest oil producer of the world around 2017, the largest producer for about five years starting about 2020, after which Saudi Arabia will become the biggest producer again by 2030. US oil imports will drop to 4 million
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