Salient to Investors: Jason Zweig of The Intelligent Investor writes: Don’t join any panic. The market can fall by at least 50% but no one can predict when. Studies show that over time, performance chasing reduces returns by an average of 1.5% per annum; a big bite in a market where the long-term inflation-adjusted
READ MORE... →Salient to Investors: If you ask your adviser to whom he or she owes their first legal duty of care, and you don’t get an immediate answer “you, as my client” then the chances are that they are not acting as a fiduciary. You can’t be a part-time fiduciary. The first
READ MORE... →Salient to Investors: Dani Rodrik at Harvard said: Emerging markets may be seen to be in deep trouble but do not deserve the doom-and-gloom treatment they are getting. Stronger economic headwinds ahead will make it easier to distinguish countries that have strengthened economic and political fundamentals from those that have relied
READ MORE... →Salient to Investors: Mark Hulbert writes: The stock market may be overvalued and could begin a bear market but it does not resemble the bubble market in 2000. The explosion of bubble warnings is unwarranted. The 5 identifiers found by JeffreyWurgler at NYU and Malcolm Baker at Harvard in stock market
READ MORE... →Salient to Investors: Fareed Zakaria said: Obama is an optimist about the world and America’s place in it – historically, optimists have tended to be right. Iran’s Gulf enemies outspend it militarily by 8 to 1, America by 40 to 1. Iran is being forced to fight on two fronts
READ MORE... →Salient to Investors: Sean Williams writes: FRB of St. Louis reports the US personal savings rate averaged 4.8% in June, 2015, no change from a year ago. The OECD reports the rate in 2011 for Germany was 11.4% and for France 16%. Hearts & Wallets reports that in 2014, 45% of
READ MORE... →Salient to Investors: Bill Gross at Janus Capital said: The global economy is dangerously close to deflationary growth. Any whiff of deflation and things tend to reverse and go badly. The CRB Commodity Index is lower than in 2008 when Lehman went bankrupt. Oil, metals and crops have plunged due to
READ MORE... →David Stockman writes: Wall Street believes the sideways market of the last 6 months is a healthy market correction in time, not price, and that markets cannot go down unless there is a recession and that none is remotely in sight. We are in month 74 of the current recovery, beyond
READ MORE... →Salient to Investors: Even the wealthiest property investors are fleeing London’s best districts due to higher sales taxes of up to 12% on the amount above £1.5 million. Camilla Dell at Black Brick Property Solutions said clients are spending an average of £2 million less on each transaction this year and are
READ MORE... →Salient to Investors: Cargill, the world’s largest grain trader, shut its commodities hedge fund last month, a sign that commodity speculators are in trouble. Donald Steinbrugge at Agecroft Partners said hedge funds are supposed to make money in both bull and bear markets but managers bias towards rising prices. Steinbrugge
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