Predictions: Alan Greenspan said Europe is a leaking boat and political consolidation is the only solution to the region’s financial crisis – we are gradually moving in that direction. Greenspan expects the “fiscal cliff” to be kicked down the road becauuse nobody wants all of those items to hit the economy all od
READ MORE... →Salient to Investors: Neil Dutta at Renaissance Macro Research said the growth backdrop is weakening, with a propensity for consumers to boost their rate of savings. Goldman Sachs lowered forecast for growth this quarter to a 1.6 percent annual rate from 1.7 percent, Morgan Stanley cut to 1.7 percent from 1.9 percent.
READ MORE... →Salient to Investors: The Bloomberg Economic Evaluation of States index shows that 31 states gained during Q1 down from 35 during Q4 2011. The results were mixed for key presidential battleground states. The states involved in manufacturing and energy were among the top gainers. Joseph Brusuelas at Bloomberg said you can clearly see
READ MORE... →Salient to Investors: PIMCO’s Bill Gross said a debt trap remains even after the European agreement, continues to avoid the debt of nations including Spain and Portugal in favor of U.S. Treasuries and mortgage securities. Gross said both the peripherals and the core union nations have too much debt, whose marginal cost
READ MORE... →Salient to Investors: The bid-to-cover ratio for 7-year Treasuries securities was the lowest since October. Marc Ostwald at Monument Securities said it’s very important to focus on the personal consumption and expenditure. Ira Jersey at Credit Suisse said it’s hard to like these yields unless you think there’s going to be a significant
READ MORE... →Salient to Investors: Mike Wittner said we’re seeing a massive return of risk appetite as the market was impressed by what the Europeans accomplished and there’s a feeling that the worst may be over. Sarah Emerson at Energy Security Analysis said the euro move will give oil a lot of support. Predictions: Rich
READ MORE... →Salient to Investors: Christopher Orndorff at Western Asset Management said Europe’s deal is a step in the right direction from a longer term perspective. July has been the best month for the Dow Industrials over the last century with an average return of 1.4 percent, and an average 0.8 percent over
READ MORE... →Salient to Investors: Amonthep Chawla at Kasikornbank said the spike in regional currencies is just a short-term reaction – there’s going to be a chronic debt crisis in Europe and investors will fear again that the problems are still there. fee paying Rafael Algarra at Security Bank Corp said good economic data about the
READ MORE... →Salient to Investors: Phil Streible at R.J. O’Brien & Associates said gold is under pressure because the U.S. economy is showing no signs of strength, while people are moving to the dollar on very little expectation Europe will find a solution. Scott Gardner at Verdmont Capital said deflation concerns have returned to the forefront,
READ MORE... →Salient to Investors: Fund managers are increasing holdings in Spain, Italy and Germany. Bank of America said 45 percent of fund managers believe euro-zone shares are undervalued, the highest for any region since at least 2001. The Euro Stoxx 50 has dropped 30 percent from February 2011 to 0.93 times book value,
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