Salient to Investors: Bill Gross at Pimco said: Investment is not being incentivized by QE. Lower interest rates are being used to consume as opposed to invest, and the money created and freed up is elevating asset prices, but corporations are not investing in future production. Asset and currency prices ultimately rest on economic growth, so
READ MORE... →Salient to Investors: John Haynes at Investec Wealth & Investment said markets are fine where they are and people are underestimating the positive momentum that is building. Earnings have exceeded projections at 72 percent of companies that have released Q3 results, while sales have trailed estimates at 60 percent. Read the full article at
READ MORE... →Salient to Investors: The global economy grew at the slowest pace since the 2009 recession. China reported the seventh straight quarter of slowing growth. Services and manufacturing in the 17-nation euro area last month contracted more than economists forecast. John Stephenson at First Asset Investment Mgmt said Europe is a complete
READ MORE... →Salient to Investors: China’s manufacturing expanded for the first time since July, signaling that the slowdown is easing and curbing the need for additional stimulus. Alexandra Knight at National Australia Bank said investors probably were a bit too optimistic to central bank announcements for further stimulus we’re starting to see an unwinding
READ MORE... →Salient to Investors: Anna Stupnytska at Goldman Sachs Asset Mgmt said: The growth market and the emerging market should be the main focus. Emerging markets are undervalued because investors are focused too much on the developed world. Investors are undervaluing the BRIC story which is still valid long-term. grow center The rise of the
READ MORE... →Salient to Investors: South Korean growth in 2012 will beat Asia’s other wealthy nations. The IMF forecasts South Korea’s economy will grow 2.7 percent in 2012 versus 2.2 percent in Japan, 1.8 percent in Hong Kong and 2.1 percent in Singapore. Samsung, whose annual sales are equivalent to 13 percent of GDP, makes almost a quarter
READ MORE... →Salient to Investors: Official inflation data is often incomplete or months out of date. Jahangir Aziz at JPMorgan Chase said that to a large extent, the Reserve Bank of India is essentially making decisions in the dark – India lacks a solid, good measure of inflation with much broader coverage of services, and
READ MORE... →Salient to Investors: Real estate investors and developers are abandoning a two-year foray into China’s provincial cities and switching back to Shanghai and Beijing, where prime offices are close to full occupancy and rents are on par with New York and Sydney, and home prices are stabilizing. Home prices have risen 155 percent
READ MORE... →Salient to Investors: Gary Shilling at A. Gary Shilling & Co writes: Investors’ zeal for yield has: Depressed yields and spreads of below-investment-grade debt versus Treasuries so much that it now takes real skill to default. The global recession will hype defaults even though many low-rated companies have a cushion of safety from
READ MORE... →Salient to Investors: Unemployment in the 17-nation euro region rose to 11.6 percent from 11.5 percent in August, the highest since data started in 1995. Youth unemployment is at 23.3 percent. Christoph Weil at Commerzbank is now more pessimistic, saying the euro-area economy will only return to growth in Q2 2013 and the jobless rate will increase
READ MORE... →