Predictions: Goldman Sachs lowered Q2 growth estimates to 1.6 percent from 1.8 percent, Morgan Stanley to 1.8 percent from 2 percent, Credit Suisse to 2.2 percent from 2.5 percent. JP Morgan’s expects more Fed action because Bernanke is far from achieving his economic mandate. Median forecast of 70 economists expects the economy to expand at
READ MORE... →Rising truck shipments show economic expansion is intact. The for-hire truck-tonnage index shows 29 months of growth – the economy has never contracted without tonnage turning negative first. The FTR’s index of U.S. truck loadings increase in April from a year earlier, the highest since 2008, shows the economy is expanding. Read the
READ MORE... →Salient to Investors: Home equity in the first quarter rose to the highest level since 2008 as homeowners refinance to pay down principal. Half the mortgages refinanced in the fourth quarter reduced loan size, a record.Predictions: About 23 percent of mortgage holders are underwater on their loans. Predictions: Median forecast
READ MORE... →The divide between the 1 percent and the 99 percent is usually is usually measured by incomes – even worse when measure by wealth. Very wealthy people only have to pay income tax when they have to liquidate, which for most of the very rich is never. Any unrealized capital gains disappear for tax purposes on
READ MORE... →Southern California home prices rise to highest level in 20 months as sellers are more willing to make deals so they can buy more desirable properties at low mortgage rates and relatively low property-tax bases. The share of higher priced homes’ rose to its highest share since July 2010, while distressed deals fell to the lowest share since March 2008.
READ MORE... →Carriers are rushing to buy newer and more fuel-efficient aircraft. Newer aircraft use less fuel because more efficient engines and use of lightweight materials. Teal Group’s Richard Aboulafia says the market for large aircraft in general is disappearing fast. Read the full article at http://www.bloomberg.com/news/2012-06-13/boeing-747-prices-tumble-as-higher-fuel-costs-end-23-year-reign.html
READ MORE... →Income and contribution limits to a Roth 401 (k) and more. Read the full article at http://www.bloomberg.com/news/2012-06-13/nine-questions-on-investing-for-retirement-in-a-roth-401-k-.html
READ MORE... →Polen Growth Fund’s Dan Davidowitz and David Polen look for value stocks in companies with a huge competitive advantage in a growth business. Like very high-quality companies with exceptionally strong balance sheets, a ton of cash, virtually no debt, free cash flow far in excess of operating capital, at least 20 percent returns on capital that are
READ MORE... →Salient to Investors: Private-equity and institutional funds cannot find enough low-cost foreclosed homes as the supply has fallen and prices have recovered. U.S. home prices are 35 percent below the 2006 peak. Demand for rentals is growing, homeownership is at the lowest level since 1997. Bulk sales may be delayed by political pressure to monitor the properties.
READ MORE... →Salient to Investors: Investment style of Fidelity Investments’ William Danoff. Meets as many as 1,000 companies a year, looks for best of breed. Looks for stocks to hold for five years, in companies taking market share, with a durable advantage. Tries to keep up with the return of the S&P 500 index in rising stock
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