Salient to Investors: Bloomberg reports 51 of 70 indicators have improved since January 2009 when Obama took office. A three month moving average of the Chicago Federal Reserve Bank’s National Activity Index shows the economy growing below its historical trend for five consecutive months and nine of the past 12. Bloomberg survey
READ MORE... →Salient to Investors: Richard Hunter at Hargreaves Lansdown said unemployment and housing in the U.S. are the twin drags which need resolving. The S&P 500 at 14.1 times estimated earnings is close to its highest price multiple since the end of 2010. Read the full article at http://www.bloomberg.com/news/2012-09-19/u-s-stock-futures-rise-on-housing-market-outlook.html
READ MORE... →Salient to Investors: Joachim Fels at Morgan Stanley said: It won’t take much to tip the world into a global recession Central banks in Europe, China, U.K. and Japan will further ease, thereby supporting asset prices, preventing deflation, helping avert sovereign defaults and maintaining economic growth. Central banks on their own cannot bring a sustainable
READ MORE... →Salient to Investors: Bjarne Schieldrop at SEB says the market’s bearishness was lifted by stimulus euphoria but brought down by a very disappointing Empire State report. David Fransen at Vitol expects Brent to range between $100 and $120. Read the full article at http://www.bloomberg.com/news/2012-09-18/oil-declines-in-new-york-after-biggest-drop-in-two-months.html
READ MORE... →Salient to Investors: Net buying of long-term U.S. equities, notes and bonds totaled $67 billion during July versus $9.3 billion in June. Guy LeBas at Janney Montgomery Scott says European investors bought Treasuries et al to protect against deterioration in the euro financial markets, and this will continue into August. China holdings of U.S. Treasuries in July rose $2.6
READ MORE... →Salient to Investors: PayScale reports 2012 graduates from South Dakota School of Mines & Technology received a median salary of $56,700 versus $54,100 for graduates from Harvard. jobs4mining.com says shortages in mine engineering and project management are acute, driving tremendous salary inflation. New mineral deposits are getting harder to find, and companies are
READ MORE... →Salient to Investors: Thomas Nyheim at Christiana Trust expects the market to flatten out until the election, slowed down by the European debt crisis is not being handled except by Band-Aids. The S&P 500 is at 14.1 times estimated earnings, near its highest multiple since the end of 2010. Bearish index options contracts are the cheapest in more than
READ MORE... →Salient to Investors: Juergen Michels at Citigroup says a huge amount of unanswered questions remain in Europe and the journey back to growth and reduced debt is very long. Jacques Cailloux at Nomura International said politicians act for their own good and their countries’ good rather than the greater good of Europe – if this continues the
READ MORE... →Salient to Investors: The S&P 500 Index is up 82 percent since Obama took office, closer to its all-time high than any other stock markets, and at 14.9 times reported earnings, the biggest discount to MSCI’s global measure since March 2010, and 9.1 percent below the five-decade mean – the last two times the ratio
READ MORE... →Salient to Investors: Sampath Reddy at Bajaj Allianz said offshore investors will buy more Indian equities after India opened its retail and aviation industries to foreigners. Bloomberg estimates foreign funds bought a net $13.4 billion of Indian shares so far in 2012, second only to China in Asia. Aditya Narain at Citigroup raised its June 2013 target
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