State Funds Focus on Alternative Assets, Ex-KIC Official Says – Bloomberg 10-18-12

Salient to Investors: Investors are growing wary of publicly traded securities as interest rate cuts at central banks helped inject liquidity into markets, bolstering bonds and stocks. Scott Kalb at KLTI Advisors said: Sovereign wealth funds are increasing their allocations to alternatives Institutional investors are focusing on hedge funds and private

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To Average or Not to Average? – Online Trading Academy 10-16-12

Salient to Investors: Dollar cost averaging works in theory but not in real life.  Brokers use DCA to increase their commissions and appease clients facing losses. DCA carries an opportunity cost. Indexes regularly change their stock makeup, removing underperforming stocks with better performers. Read the full article at http://lessons.tradingacademy.com/article/to-average-or-not-to-average/

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Warburg Hunts Stakes for World Cup Buildup: Corporate Brazil – Bloomberg 10-16-12

Salient to Investors: Luca Molinari at Warburg Pincus is targeting infrastructure service providers in Brazil which will grow significantly in the coming years. BTG Pactual Participations and Carlyle Group also seek to profit from investments needed to upgrade Brazil’s infrastructure for the World Cup and 2016 Summer Olympic Games. Eduardo Centola at Banco

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BlackRock Buys High-Grade at Yield’s Tipping Point: Muni Credit – Bloomberg 10-16-12

Salient to Investors: BlackRock is reducing holdings of speculative-grade munis and buying those rated A to AA as the US faces the fiscal cliff. Laurence Fink at Blackrock said the economy may go into recession next quarter as companies curb hiring. Sean Carney at BlackRock said there’s ample liquidity in the high-yield market as everyone wants it. Peter

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U.S. Stocks Gain as Factory Output, Profits Top Estimates – Bloomberg 10-16-12

Salient to Investors: Chad Morganlander at Stifel Nicolaus said investors are cycling back into risk as earnings and US economic numbers are better than expected. Morganlander said economic growth will continue sluggish. 48 S&P 500 have reported since Oct. 9 – 35 exceeded estimates. James Gaul at Boston Advisors sees more good news than bad and no reason for the

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Euro Gains Beyond $1.30 on Speculation Spain Will Request Aid – Bloomberg 10-16-12

Salient to Investors: The ZEW Center for European Economic Research  index of investor and analyst expectations rose to minus 11.5 from minus 18.2 in September. Neil Jones at Mizuho Corporate Bank said the better the chances of a bailout for Spain, the more risk-on that is – the market is not prepared for the upside or

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