Salient to Investors: Peter Elston at Aberdeen Asset Mgmt said is very concerned about the near-term global economy, sees significant weakness around the corner which will have a big impact on corporates and markets. The MSCI Asia Pacific index is 12.8 times estimated earnings versus 14.1 for the S&P 500 and 12.1 for the Stoxx Europe 600
READ MORE... →Salient to Investors: The S&P 500 is at 14.9 times reported earnings versus average 16.3 since 1954. Read the full article at http://www.bloomberg.com/news/2012-09-21/s-p-500-snaps-two-week-rally-amid-global-economy-concern.html
READ MORE... →Salient to Investors: Jason Rogan at Guggenheim Partners said the economy is not double-dipping into another recession,but growth is not robust. Thomas Roth at Mitsubishi UFJ Securities USA said low volatility is not going to go away. Hedge-fund managers et al reversed to a net-short position in the week ended Sept. 18. David Coard at Williams Capital
READ MORE... →Salient to Investors: EPFR Global report junk-bond funds saw inflows of $3.63 billion last week, the biggest rise since the week ended Oct. 26 2011 – Junk ETFs accounted for 40 percent of all U.S. flows. Matthew Tucker at BlackRock said more institutional investors are buying ETFs causing a scarcity of bonds. Most bond proceeds
READ MORE... →Salient to Investors: UBS said power producers will open six times more coal-burning plants than gas-fed units by 2015. Demand for emission permits will rise because coal-fired generators need twice as many credits as gas users under climate protection rules. Matthew Gray at Jefferies says the outlook for Certified Emission Reductions
READ MORE... →Salient to Investors: Mark Smallwood at Deutsche Bank said gold is increasingly being used as a monetary instrument as more high net-worth individuals seek to protect their wealth from the risk of rising inflation, with an increased preference for physical holdings. Holdings in gold-backed exchange-traded products reached an all-time high yesterday. Bank of America said
READ MORE... →Salient to Investors: Bloomberg reports the overall bullish outlook of analysts extended for an 18th week. Buyers bought the more exchange traded products this quarter than in two years. Hedge funds et al more than doubled net-long position since July 24 to the most since Feb. 28. Bank of America predicts gold at $2,000 by
READ MORE... →Salient to Investors: Large investors are increasingly seeking separately managed accounts with better terms than the others. Regulators are concerned that a manager may evaluate the same investment for a pooled fund and a separately managed account but protect the favored large investor from due diligence costs if the deal falls through. Regulators are examining whether managers
READ MORE... →Salient to Investors: Options traders are paying record prices to protect against swings in long-term U.S. Treasuries relative to stocks amid concern inflation will accelerate. The ratio between implied volatility for contracts closest to the iShares Barclays 20+ Year Treasury Bond Fund and the SPDR S&P 500 ETF Trust reached the highest since
READ MORE... →Salient to Investors: Men’s wages are growing faster than women’s in China. Japan and South Korea have famously thick glass ceilings. China has an estimated 20 million to 30 million surplus men, and India is not far behind. In the 2020s in China and northwest India, marriageable men will outnumber marriageable females by 15 to 20
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