Salient to Investors: The median economist expects the Fed to reduce bond purchases in $10 billion increments over the next 6 meetings before announcing an end to the program by December. Michael Feroli at JPMorgan Chase said the weather played a big role in the weak jobs report and is
READ MORE... →Salient to Investors: Frederic Tassin at Aviva Investors expects the economic surprise for 2014 to be on the upside, is optimistic on Europe and is finding many opportunities in terms of valuations in equities. The European equity index is at 14.1 x projected earnings versus 15.6 x for the S&P
READ MORE... →Salient to Investors: Mortgage REITs yield 13 percent versus 3.8 percent for T-Bonds. In 2013 mortgage REITs lost 3 percent on average even after factoring in double-digit dividend yields – versus 30 percent for the S&P 500. Michael Widner at KBW Bank said the average mortgage REIT trades at a
READ MORE... →Salient to Investors: Zillow expects 5 percent mortgages by year-end and the 10 places where the percentage of monthly income will be pushed furthest above the average are, in order: Stockton, Ca – where the median price of a home will rise 22.8 percent by September. Honolulu, Ha – where
READ MORE... →Salient to Investors: A majority of FOMC participants in December judged that the marginal efficacy of purchases was likely declining as purchases continue and worried about the marginal cost of additional asset purchases arising from risks to financial stability, citing the potential for excessive risk-taking in the financial sector. Michael
READ MORE... →Salient to Investors: William Pesek writes: George Soros believes the main risk facing the world is a Chinese debt disaster that is unfolding in plain sight. Soros said China’s restarting of the furnaces also reignites exponential debt growth, which cannot be sustained for much longer than a couple of years. Soros
READ MORE... →Salient to Investors: Dane Stangler at The Kauffman Foundation said people aged 55 to 64 started 23.4 percent of companies in 2012, up from 14.3 percent in 1996. Stangler said the 30-yr corporate job with a gold watch is no longer there, and many people are not ready to retire.
READ MORE... →Salient to Investors: IEA said 15 European refineries have closed in the past 5 years and a 16th is due to close in 2014 as the US went from depending on fuel from Europe to being a major exporter to the region. Nigeria, which once sent 12 supertankers worth of
READ MORE... →Salient to Investors: Hedge funds returned an average of 7.4 percent in 2013, trailing the S&P 500 by 23 percent and for the 5th straight year. The Bloomberg Hedge Funds Aggregate Index is down 1.8 percent from its July 2007 peak. Jay Rogers at Alpha Strategies Investment Consulting said hedge
READ MORE... →Salient to Investors: German apartment portfolios valued at $18.8 billion changed hands in 2013, the most since 2006. German homes have been targeted by investors seeking to profit from steady rental income that is supported by a growing economy and low unemployment. CBRE said companies spent 23 percent more on
READ MORE... →