Salient to Investors: The cheap valuations of European banks, Japanese carmakers, Hong Kong developers and Russian oil producers are attracting investors, indicating that most investors are more concerned with preserving capital than earning higher returns. Shares with the lowest price-to-book ratios lost an average 10 percent since March 2012 and trailed the most expensive shares by
READ MORE... →Salient to Investors: Quantitative Equity Research reports that since 2004, stocks in the S&P 500 that pay dividends only outperformed stocks that neither pay dividends or buy back shares, which outperformed stocks that both pay dividends and buyback shares, which outperformed stocks that buyback shares only. The number of stocks that pay dividends only has
READ MORE... →Salient to Investors: High-frequency trading accounts for more than half of equity trading volume. Read the full article at http://www.bloomberg.com/news/2012-06-22/wash-trading-by-high-frequency-firms-said-to-face-u-s-scrutiny.html
READ MORE... →Salient to Investors: Kantar Retail research showed 36 items across four categories including edible grocery, non-edible grocery, health and beauty aids and general merchandise were on average 20 percent more expensive at Amazon than at Wal-Mart. On goods such as food, Amazon’s prices were almost 60 percent more. Five years ago, about a quarter of Wal-Mart’s customers
READ MORE... →Salient to Investors: Housing industry is restrained the weakest employment gain in a year last month and limited access to credit. The median price of an existing home climbed to $182,600 in May, the highest since June 2010. Cash transactions accounted for about 28 percent, distressed sales 25 percent , investors for
READ MORE... →Salient to Investors: Jim O’Neill at Goldman Sachs Asset Management said over the past decade or so, inflation targeting, has not been sufficient, as great as it’s been for the U.K. O’Neill would add monitoring aspects of credit behavior and bank lending, and install a financial-conditions indicator as a warning sign. Read the full article
READ MORE... →Predictions: Bill Gross warned that risk markets are vulnerable as the monetary bag of tricks empties. Gross prefers U.S., Mexico and Brazil debt with intermediate maturities over the next few years, and stocks in companies that produce stable cash flow in high growth markets. Gross increased the proportion of U.S. government and Treasury debt in the
READ MORE... →Salient to Investors: German auto rebates on new cars rose to a seven-year high in June. Moody’s cut the ratings of 15 global banks due to their significant exposure to the volatility and risk of outsized losses. Predictions: Lucy MacDonald at RCM expects extremely low growth, low interest rates and much politically driven volatility
READ MORE... →Salient to Investors: Downgrades of 15 global banks by Moody’s Investors Service were met instead by rallies in stocks and bonds. Gerard Cassidy at RBC Capital Markets said American banks are stronger than three years ago, and market prices have long reflected concerns raised by Moody’s. Moody’s announced on Feb. 15 that it was reviewing the
READ MORE... →Salient to Investors: Investor Jim Pogoda said just extending Operation Twist was seen as not enough to keep positive momentum in gold, which will attract some safe haven investment as the focus turn quickly back to debt troubles in Europe. Nick Moore at Royal Bank of Scotland Group said global financial market risks abound and
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