Salient to Investors: Global investors are buying emerging-market debt and shares of well capitalized companies. Anne Richards at Aberdeen Asset Management likes balance sheet strength, says many European equities are high risk and U.S. Treasuries are overvalued. Richards says investors are underestimating the health of Asian issuers – Likes Indonesian sovereign debt, Latin American
READ MORE... →Salient to Investors: Government measures to stimulate the world’s second-biggest economy have yet to reverse a slowdown that may deepen for a sixth quarter. China’s economy expanded 8.1 percent in Q1, the least in almost three years and the fifth quarterly deceleration. Predictions: Dariusz Kowalczyk at Credit Agricole CIB said industrial profits
READ MORE... →Salient to Investors: Emerging-market equity funds posted $8.7 billion of outflows in Q2, $262 million of outflows n the week ended June 27 – 2012 inflows dropped to $14 billion. Russia’s RTS Index lost 22 percent this quarter, Brazil’s Bovespa Index lost 18 percent, Shanghai Composite Index lost 2.3 percent. Chinese industrial companies’ profits
READ MORE... →Salient to Investors: Neil Shearing at Capital Economics says there is an improvement in the global risk appetite because fears of an immediate disruption in the euro zone have eased, and policy makers seem willing to move. EU is the largest export market for Brazil, Russia, India and China. EPFR Global reported that emerging
READ MORE... →Salient to Investors: Mark O’Byrne at GoldCore says demand picked up in the last month, and sees no resolution to the Europe crisis in the short-term. ETP holdings is within 0.1 percent of the record set in March. Russia, Turkey, Ukraine and Kazakhstan expanded gold reserves by a combined 25 tons in May. Edel Tully at
READ MORE... →Salient to Investors: Douglas Brinkley at Rice University said Obama avoided disaster. David Redlawsk at Rutgers said voters are still going to vote their pocketbooks. Harvard professor Robert Blendon said voters admire people who get things done, but the ruling won’t shift a lot of health policy voters. Read the full article at http://www.bloomberg.com/news/2012-06-28/obama-s-supreme-court-win-may-help-now-more-than-november.html
READ MORE... →Salient to Investors: PIMCO’s Bill Gross said the debt trap remains even after the European agreement, continues to avoid Spanish and Portuguese debt in favor of U.S. Treasuries and mortgage securities, Gross. Matt McCormick at Bahl & Gaynor said Europe and the economy raises more questions than answers for investors – after Facebook, they want problem-free IPOs. Read
READ MORE... →Salient to Investors: IPOs globally raised $41.3 billion, the worst Q2 since 2009, down 34 percent from a year ago – hurt by Europe, slowing Chinese growth, and Facebook’s drop. Asia saw its slowest Q2 for IPOs since 2009. The S&P 500 Index moved an average of 1 percent a day in June, about twice the rate
READ MORE... →Predictions: Michael Hewson at CMC Markets UK says oil prices reflect the market’s expectation of no growth in Europe for the next few years, and may fall as low as $76 a barrel (Brent) in the next six months, despite Iran causing a rally in the short term – the overall outlook is down, based on the lack
READ MORE... →Salient to Investors: Kenneth Heebner said the U.S. is poised to outperform most countries – lower growth in Asia and Europe will lower oil and commodity prices, a de facto tax cut for U.S. consumers. Heebner sees forces driving the U.S. in a positive direction – the real estate bust has created pent-up demand for housing
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