Salient to Investors: The S&P 500 is at 14.9 times reported earnings versus the average 16.3 multiple since 1954. Michael Price at MFP Investors says the U.S. is the most attractive stock market because of the strength of corporate balance sheets, low interest rates and valuations. Price said it’s very early for European stocks. Read the
READ MORE... →Salient to Investors: Amherst College lost its top credit rating because of a significant debt increase that reduced its standing relative to top-grade liberal-arts peers, and Williams College was downgraded in July because of diminished financial resource ratios. Amherst issued $100 million of taxable bonds after investing in illiquid assets such as private equity left
READ MORE... →Salient to Investors: Yuan Gangming at Chinese Academy of Social Sciences said: China’s economic slowdown may last longer than during the global financial crisis and extend into Q1 2013; aggravated by unsustainable local-government spending plans Medium and small-sized businesses are finding it increasingly hard to borrow from banks China’s target for 14 percent growth in M2 too
READ MORE... →Salient to Investors: Concern is mounting that the government isn’t doing enough to bolster economic growth at a time when producers are expanding supply. Bloomberg survey median expects the S&P GSCI index to rise 3.1 percent by year-end. Barclays says the impact of QE will be smaller this time, says commodity assets under management
READ MORE... →Salient to Investors: FRB Dallas President Richard Fisher said: QE3 won’t work due to Congress inaction and excessive government regulation, which are holding back hiring and investment Residential real estate is a recent bright spot QE3 risks higher inflation – if you allow higher prices, how credible are you in clawing them back? Read the full article
READ MORE... →Salient to Investors: Texas bonds this year have outperformed other top-rated states. John Bonnell at USAA Investments said the nation’s second-biggest economy shields Texas from cutbacks and lures bond investors, with demand for almost everything in Texas. Robert Dye at Comerica said: The population of Texas, the second-most-populous state, is younger than the U.S. average
READ MORE... →Salient to Investors: Frank Velling at BankInvest recommends reducing holdings of equities as the global rally in stocks will fade as the budget dispute in Congress and election will stifle growth. Velling said global stocks can’t rise much more on monetary stimulus – any further advance rely heavily on a pick-up in U.S. economic growth. Read
READ MORE... →Salient to Investors: Jim Chanos at Kynikos Associates says: He expects declines in companies that may be inexpensive compared with earnings, like in natural gas, which have enormous cash needs, and iron-ore producers, where industry capacity will expand globally even as demand stalls because of China’s slowdown A number of high-profile natural gas companies may be in financial
READ MORE... →Salient to Investors: Yelena Shulyatyeva at BNP Paribas expects housing to be a bright spot despite foreclosures, delinquencies, people cutting mortgage debt. Investors can buy very cheap houses and, with rents rising, can get good yields. Primary residence rents rose 2.6 percent in the year ended August versus a 1.7 percent gain in average hourly wages. Read the full article
READ MORE... →Salient to Investors: Bernard Sin at MKS Finance said gold is boosted by any form of quantitative easing and will trend higher. Read the full article at http://www.bloomberg.com/news/2012-09-19/gold-declines-as-rally-spurs-sales-platinum-extends-drop.html
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