Salient to Investors: Mortgage REITs tumbled on the expectation that more homeowners would be able to prepay mortgages and because lower yields on new investments would squeeze earnings and dividends. Vitaliy Liberman at DoubleLine Capital said continuation of policies that started last year are basically assured now. Edward Mills at FBR Capital Markets said housing is a clear winner
READ MORE... →Salient to Investors: Wu Kan, a fund manager at Dazhong Insurance said the market focus is returning to the fiscal cliff. The MSCI Emerging Markets Index trades at 11.4 times estimated earnings versus 13.2 times for the MSCI World Index. 57 percent of MSCI Emerging Markets Index companies so far reporting have missed
READ MORE... →Salient to Investors: Arnaud Scarpaci at Agilis Gestion said earnings have been positive, and Europe is recovering – all is functioning in the micro-economy. 54 percent of Stoxx 600 companies so far reporting have exceeded analysts earnings projections. Matthieu Giuliani at Banque Palatine said catastrophe in Greece has been avoided, but the problem is no growth, so have
READ MORE... →Salient to Investors: Bill Miller at Legg Mason said because housing has done so well, the next move there is in financials. Miller said an improved housing market means banks’ mortgage origination businesses will improve. Miller’s fund had 40 percent of assets in financial stocks as of Sept. 30, and
READ MORE... →Salient to Investors: The US trade deficit narrowed in September, the smallest since December 2010 and lower than any estimate in surveyed economists – exports were broad-based. Growing demand from emerging markets in South and Central America may be helping to overcome a slowdown in Europe and China. Imports climbed as US consumers
READ MORE... →Salient to Investors: Brian Jacobsen at Wells Fargo Advantage Funds and Bruce Bittles at RW Baird said Obama will continue to support the Fed’s interest-rate policy. Bittles said Obama’s victory will make the fiscal cliff more difficult to deal with. Jacobsen said Bernanke will serve another term because his academic writings recognizes that
READ MORE... →Salient to Investors: James Dunigan at PNC Wealth Mgmt said the fiscal cliff is going to be very messy, though we’ll get there. Alan Greenspan said the election perpetuated the political status quo and hasn’t increased the probability of resolving the fiscal challenges. Barry Knapp at Barclays recommended cutting risk, and lowered his estimate for the S&P 500
READ MORE... →Salient to Investors: Noriaki Murao at Bank of Tokyo-Mitsubishi UFJ said the biggest focus as we head into year-end will be the fiscal cliff – investors are buying safe currencies such as the dollar and yen. 62 of 63 economists expect the ECB to keep its benchmark interest rate unchanged at 0.75 percent. Ray
READ MORE... →Salient to Investors: Fidelity Investments and Pimco said the fiscal cliff and Fed bond purchases will drive demand for debt. Roger Bridges at Tyndall Investment Mgmt we’re back into political games – if we continue this policy uncertainty, then the economy will fall and bonds will rally. Bill Irving at Fidelity said people own government
READ MORE... →Salient to Investors: Jonathan Alter says Obama’s victory instantly destroys three myths of this election: Pocketbook issues are decisive. Voters picked the candidate they thought would be on the side of people like me and who would be better for the middle class. Aerial assaults beat ground troops. TV ads are no
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