Salient to Investors: Jaison R Abel and Richard Deitz at FRB of New York said: The value of an average US university degree has been near all-time high for more than a decade but may be only because wages of high school graduates have been falling. It takes the average student at least
READ MORE... →Salient to Investors: Scott Minerd at Guggenheim Partners writes: The world is awash with liquidity and the promise of more easy money and QE in Europe bodes well for equities and bond prices. The recent high of the NYSE Advance-Decline Line is bullish. In Europe, negative deposit rates should encourage commercial banks
READ MORE... →Salient to Investors: James O’Shaughnessy of O’Shaughnessy Asset Mgmt said: Fidelity found that their best performing accounts were those of people who forgot they had an account with them. The shorter you hold a stock, the more likely you are to lose money. Barry Ritholtz found that when families fought over inherited
READ MORE... →Salient to Investors: The Ibovespa stock benchmark has risen 35% from its March 14 bottom – the best performance of global major equity indexes – despite economists cutting 2015 growth forecasts month after month to a record low. Bullish investors are betting on a new government in October that will lure investment.
READ MORE... →Salient to Investors: Jan Freitag at STR said from May through July, the most hotel room nights were sold since they began tracking the data in 1987, while reservations for Saturday nights, at almost 83% occupancy in July, is an indication of the healthy return of leisure travel. STR predicts revpar
READ MORE... →Salient to Investors: The FTSE 100 Index is within 0.1% of its 1999 high, after which it fell for 3 years, The cost of hedging against losses in the FTSE 100 is close to a 2-year high. Alan Higgins at Coutts is not overweight UK equities and said the FTSE
READ MORE... →Salient to Investors: Jonathan Mackay at Morgan Stanley Wealth Management said investment-grade bonds will post annual returns of 1% to 2% for the next 7 years versus 8.7% average annual gains in the 30 years through 2012 – Fed stimulus is supporting bond values but lowering portfolio returns. Michael Hartnett at
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Insufficient credit creation with 2% economic growth jeopardizes US growth because our credit-based financial economy depends on an ever-expanding outstanding level of credit for its survival. If the credit growth is more than 4.5% a year, then private and public sectors must create
READ MORE... →Salient to Investors: Millennials may find it more difficult to climb the corporate ladder as new businesses, which employ more young workers, become a smaller force in the labor market. Gary Burtless at Brookings said rapid progress for new and young workers is much rarer in long-established firms. Burtless said
READ MORE... →Salient to Investors: Thomas di Galoma at ED&F Man Capital Markets said the yield curve is flattening partially because there is no inflation, while real returns are very high and there is nowhere to put your money but the long end. The yield gap between 5- and 30-yr Treasuries is
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