Salient to Investors: Matt McCormick at Bahl & Gaynor says investors are bracing for more volatility on the basis that the economy and market are not as strong as they thought. Raymond James said equities are vulnerable to losses. Citigroup is concerned about a severe pullback. Christine Lagarde at IMF
READ MORE... →Salient to Investors: Global debt complacency is evidenced by investor enthusiasm for the debt of Ecuador, Clear Channel Communications, China’s Logan Property Holdings, Greece’s Hellenic Petroleum, Florida’s Orange County Industrial Development Authority. Japan’s Government Pension Investment Fund is even considering venturing into junk bonds. Almost any borrower is able to raise
READ MORE... →Salient to Investors: Money managers increased net-long positions in gold for a fourth straight week through July 1 and assets in gold-backed global ETPs are rising at the fastest pace since November 2012. John Kinsey at Caldwell Securities expects further gold strength through 2014. Societe Generale predicts gold prices will
READ MORE... →Salient to Investors: Karen Umland at the DFA Emerging Markets Small Cap Portfolio Fund is slightly overweight India, and had 15 percent of holdings in Taiwan, over 14 percent in South Korea, over 14 percent in China, and 9.2 percent in Brazil at the end of Q1. Umland dislikes Russia
READ MORE... →Salient to Investors: Sabine Lautenschlaeger at ECB said radical programs such as QE should only be considered in real emergency situations, like imminent deflation, because the side effects are especially significant, but said that those risks are neither visible nor expected. Benoit Coeure at ECB said rates will remain very
READ MORE... →Salient to Investors: Tom Stringfellow at Frost Investment Advisors expects interest rates to rise sooner than people expect, causing a knee-jerk reaction, but not at a rate that derails this stable environment. Jan Hatzius at Goldman Sachs expects the Fed to raise rates in Q3 2015. The S&P 500 is
READ MORE... →Salient to Investors: Rotating into defensive industries has been a losing strategy for the third straight year as personal spending, manufacturing and inflation have exceeded analyst forecasts. The median projection says Q2 GDP grew 3.5 percent. Inflows into health-care and utility ETFs exceed $3 billion in 2014 versus $580 million inflows
READ MORE... →Salient to Investors: Neil Woodford at Woodford Investment Mgmt is cautious on the global economy and is buying sectors resilient to economic downturns like drugmakers and cigarette makers. Read the full article at http://www.bloomberg.com/news/2014-07-06/woodford-s-cautious-stance-see-glaxo-bat-top-10-holdings.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: The economy resembles the 1970s more than the 1990s. Alan Blinder at Princeton sees risk of the economy moving in the same direction as it did after 1973, though we are a long way from seeing a sustained rise in inflation. Blinder said the long-term trend in
READ MORE... →Salient to Investors: Barry Ritholtz writes: The market’s various new highs are bullish. Corrections are normal so should not be feared: since March 2009, we have had 9 corrections from 6-22 percent. Corrections are impossible to forecast because people are terrible at making predictions and we don’t know what the
READ MORE... →