Salient to Investors: Tom Russo at Gardner Russo & Gardner said Berkshire’s Intel trade reflects a more traditional style of value investing – buy attractively priced stocks and sell once they hit a target. Warren Buffett believes that holding large positions in first-class businesses over the long term generates better returns than bonds, gold and other assets often deemed safe. Read
READ MORE... →Salient to Investors: Dan Mulholland at BNY Mellon sees Fed policies as inflationary, resulting in the long end of the curve losing sponsorship. The yield gap between 10-year notes and TIPS – called the 10-year break-even rate – increased to as high as 2.54 percent, the highest since May 2011 and versus an average of 2.16 percentage
READ MORE... →Salient to Investors: Allan Yu at Metropolitan Bank & Trust said QE will benefit emerging markets and equities, and likes the U.S., Europe and China taking steps to avert a slowdown. The MSCI gauge is up 15 percent from the year’s low on June 4. Benoit Anne at SocGen said the powerful policy signal sent by the Fed means the
READ MORE... →Salient to Investors: Charles St-Arnaud at Nomura said QE is negative for the dollar. Jeremy Stretch at Canadian Imperial Bank of Commerce sees a weakening dollar trend. Read the full article at http://www.bloomberg.com/news/2012-09-13/dollar-is-near-4-month-low-against-euro-after-fed-expands-easing.html
READ MORE... →Salient to Investors: Millan Mulraine at TD Securities said retail sales are not as strong as the headline number suggests as the price of gas will divert from discretionary spending. Jenny Lin at Ford said economic fundamentals remain modest but stable. Read the full article at http://www.bloomberg.com/news/2012-09-14/retail-sales-in-u-s-increased-0-9-in-august-on-auto-demand.html
READ MORE... →Salient to Investors: Morningstar reports mutual fund and ETF fund assets in utilities increased more than 30 percent in the 12 months through July. Utilities typically trade at a 20 percent valuation discount to the S&P 500. The P/E ratio of the Bloomberg Industries North American regulated integrated utilities is 14.9 times estimated 12-month earnings versus 12.8 for the S&P 500.
READ MORE... →Salient to Investors: Systematic withdrawals during down markets early in retirement can devastate nest eggs. One solution is “bucketing” retirement savings into different types of assets to account for the timing of withdrawals. Read the full article at http://www.investmentnews.com/article/20120909/REG/309099973
READ MORE... →Salient to Investors: In a Bloomberg poll of 847 investors, analysts and traders: A quarter expect Chinese markets to be among the worst performers over the next year. 46 percent, the highest, say U.S markets offer among the best returns over the next year. 18 percent expect commodities to offer the highest
READ MORE... →Salient to Investors: Sivan Mahadevan et al at Morgan Stanley said longer-dated bonds pose the biggest risk in the U.S. corporate bond market. Read the full article at http://www.bloomberg.com/news/2012-09-07/investment-grade-long-bonds-pose-most-risk-morgan-stanley-says.html
READ MORE... →Salient to Investors: More Germans have bought equities the most in five years due to inflation rising and less security and stability in bonds because of concerns surrounding Portugal, Italy, Greece and Spain – Germans traditionally loved government bonds. Share ownership declined almost every year in the decade through 2011. Economist forecasts compiled by Bloomberg predict
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