Salient to Investors: Barry Knapp at Barclays says no election has mattered more. Jeff Kleintop at LPL Financial says many industries are heavily influenced by legislation and regulation, so a change in policymakers can have a big impact. S&P Capital IQ says that since 1900, the stock market, economic growth and corporate earnings in
READ MORE... →Salient to Investors: The SPDR S&P 500 ETF is 9% of all U.S. ETF assets. Exchange-traded products comprise $1.3 trillion in assets. Net new cash into ETFs is on pace for more than $100 billion for the 6th year in a row. XTF reports that over 80 exchange-traded products have been withdrawn from the
READ MORE... →Salient to Investors: The days of instant rewards from the stock market are over. Larry Fink at Blackrock says be 100% in equities, prefers stocks to bonds. Bill Gross at Pimco says the cult of equities is dead but sees stocks offering double the nominal return of bonds over the next several
READ MORE... →Salient to Investors: Zillow reports US home values in Q3 was the biggest gain since Q1 2006. Growing demand from investors and foreign buyers is raising values in areas hard-hit by the housing crash. Phoenix rose the most, Atlanta dropped the most. Zillow forecasts prices will increase 1.7 percent over the next year. Stan Humphries at
READ MORE... →Salient to Investors: Tom Wirth at Chemung Canal Trust said the earnings season has disappointed many, sales are disappointing. 70 percent of S&P 500 companies beat analysts’ estimates in Q3, 60 percent have missed sales forecasts. The S&P GSCI spot gauge of 24 raw materials erased gains for the year. Robert Shiller at Yale said
READ MORE... →Salient to Investors: The S&P 500 is up 14 percent in 2012, beating Treasuries, corporate bonds, commodities, the dollar and equities in Asia and Europe for the first time since 1995. The S&P 500 earnings yield is 6.9 percent versus 2.7 percent on investment-grade US corporate bonds – the spread of 4.2 percent compares
READ MORE... →Salient to Investors: Hans Redeker at Morgan Stanley said the dollar will rise to 84 yen after exceeding it’s 200-day moving average – the yen is the weakest of the G-10 currencies. Read the full article at http://www.bloomberg.com/news/2012-10-22/dollar-moving-average-signals-gain-to-84-yen-technical-analysis.html
READ MORE... →Salient to Investors: Peter Jankovskis at Oakbrook Investments said many companies have beat earnings estimates but investors are watching their ability to grow revenue. 69 percent of S&P 500 companies beat Q3 analysts’ estimates, 59 percent missed sales forecasts. Caterpillar forecast sales growth for 2013 that is the slowest in four years. Freeport-McMoRan Copper &
READ MORE... →Salient to Investors: Hedge funds cut bullish commodity bets to the lowest since July 24 on speculation China and Europe aren’t doing enough to boost growth. Gold bets fell 7 percent, silver fell 5.8 percent. Bill Greiner at Mariner Wealth Advisors said global growth weakening, China growth is pretty weak. Barclays
READ MORE... →Salient to Investors: Larry Summers said Europe’s handling of the sovereign debt crisis evokes comparisons with US strategy during the Vietnam War which opted at each juncture to do the “minimum” to avoid an imminent catastrophe until it all collapsed. Summers said measures are not in place that will drive adequate economic growth,
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