Salient to Investors: Byron Wien at Blackstone said it looks like the EU will survive at least for a while, and Mario Draghi looks serious about providing liquidity. Read the full article at http://www.bloomberg.com/news/2012-09-07/s-p-500-rallies-to-highest-since-2008-on-stimulus-bets.html
READ MORE... →Salient to Investors: Michael Feroli at JPMorgan Chase said the jobs report is a setback for the labor market and the economy and validates Bernanke’s concern. Bill Gross said the Fed will likely ease further through “open-ended” purchases of Treasuries and mortgages and extend its pledge to keep interest rates low
READ MORE... →Salient to Investors: The S&Ps 500 Index is closer to a record than any other major stock market. Laszlo Birinyi expects more gains as bearish investors give up excuses of no volume and the belief that earnings aren’t going to be good, and start buying. Birinyi is surprised by the market’s strength and breadth. Byron Wien at Blackstone said everybody
READ MORE... →Salient to Investors: Copper bulls at their highest percentage since Oct. 14 2011 on rising speculation central banks will bolster growth. Hedge funds are bullish for the first time since May, while stockpiles dropped to the lowest level in almost four years. Jeffrey Currie at Goldman Sachs said commodities may rise 10 percent, copper to
READ MORE... →Salient to Investors: S&P 500 Index at highest since 2008. The Dow at highest since December 2007. Dan Veru at Palisade Capital Management said we are peeling away the uncertainties little by little, and Draghi is serious about putting Europe on a positive path. David Pearl at Epoch Investment Partners said the U.S. data is moving positively and we’re
READ MORE... →Salient to Investors: Bruce Stout at Aberdeen Asset Management said: Central bankers are going round and round in the credit cycle believing that reducing interest rates will cure the illness that’s completely different from the past. We are no further ahead defining the main issue: the crisis of public sector indebtedness, which will take
READ MORE... →Salient to Investors: Pimco’s Bill Gross said: Investors face an age of inflation, a headwind for both stocks and bonds. The cult of equity was dying, and long-term equity returns of 6.6 percent above inflation – the Siegel Constant – won’t be seen again. Institutional investors will find the highest returns in countries with faster growth
READ MORE... →Salient to Investors: Walter de Wet at Standard Bank said gold has strong resistance at $1,700. Thomson Reuters GFMS predicts gold will rise above $1,800 by year-end as central banks stimulate. Read the full article at http://www.bloomberg.com/news/2012-09-05/gold-drops-from-five-month-high-before-ecb-meeting-silver-falls.html
READ MORE... →Salient to Investors: BlackRock said rising life expectancy is pressuring the elderly to seek higher investment returns, trumping the past wisdom of moving into fixed income which was valid when life expectancy was much lower. High-quality bonds yield almost nil because of risk-aversion, so won’t make savings last longer after retirement – e.g. German 2-year government bonds yields fell
READ MORE... →Salient to Investors: The S&P 500 is not a measure of the American economy and U.S. stocks because it is global due to the multinationals included in the index. The S&P 500 is not broadly diversified because it is market cap-weighted. Tech is 20 percent, Apple near 5% , Exxon Mobil near 3%. An S&P indexed fund is not
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