Salient to Investors: A record number of investors bet on the “Sell In May and Go Away” adage this year, but so far year the indexes are up. Since 1896, this six-month period has done at least just over half the time as well as it has this year so far. October historically has
READ MORE... →Salient to Investors: Nigel Gault and Paul Edelstein at IHS Global Insight expects payroll growth won’t be enough to reduce the unemployment rate. Doug Roberts at Channel Capital Research said most of the rally is being driven by QE. Wasif Latif at USAA Investments said Spain will need to accept the offer from the ECB. bad
READ MORE... →Salient to Investors: Ethan Harris at Bank of America Merrill Lynch said central bank actions have clearly been a major factor in the market rally. Larry Kantor at Barclays said a modestly growing economy with depressed cyclically sensitive sectors is a relatively stable and safe environment, and when combined with a central bank
READ MORE... →Salient to Investors: The Census Bureau Gini Index shows income inequality reached a new high in 2011. Quarterly corporate profits have almost doubled since the end of 2008, while workers’ inflation- adjusted average hourly earnings have declined. Anne Mathias at Guggenheim Securities said said fifty years ago it was how the other half lived,
READ MORE... →Salient to Investors: It’s unlikely the leaders will allow any escalation into open conflict. Richard Samuels at MIT said the conflict is due to domestic political considerations as the whole region is roiling amid uncertainty over leadership. Samuels says there is always the danger of miscalculation which is why Japan patrols with
READ MORE... →Salient to Investors: Joe Manimbo at Western Union Business Solutions is skeptical the Spanish stress test results will alleviate concerns about global growth, though it can keep some firepower available for the bloc’s rescue fund. Read the full article at http://www.bloomberg.com/news/2012-09-27/euro-holds-gain-as-spain-cuts-boosts-bailout-prospects.html
READ MORE... →Salient to Investors: Copper bulls retreated for a third consecutive week on concern about weaker manufacturing from Europe to China. Christine Lagarde at the IMF expects weaker global growth than forecast in July. Filip Petersson at SEB says it will take time for stimulus to impact real demand, and sees poor data globally – industrial-metals
READ MORE... →Salient to Investors: Joseph Franco at Suffolk University said pay-to-play is an inevitable consequence of bankers seeking lucrative fees controlled by politicians – firms create incentive structures for their bankers that fuel this sort of conduct. David Trone at JMP Securities and others said the settlement had no effect on the bank’s share
READ MORE... →Salient to Investors: Bloomberg calculates that Australian stocks of explorers of shale rock in the U.S. and Canada sell for a median of 11 times reserves versus 14.3 times for equivalent North American companies. RBS Morgans say this valuation gap may lure acquirers. Ben Griffiths at Eley Griffiths Group expects many more transactions involving Australian players
READ MORE... →Salient to Investors: Padhraic Garvey at ING Bank said yields will stay low as growth remains weak. Carl Lantz at Credit Suisse said 10-yr yields will fall to a record 1.35 percent by Dec. 31. Bloomberg survey of economists predict the 10-yr yield will rise to 1.80 percent by Dec. 31. Bank
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