Salient to Investors: Citigroup said pension funds bought 8% of the top-rated US CLOs, which slice high-yield loans into securities with varying risks , and 7% of the riskier mezzanine notes in Half1, 2015, versus minimal amounts a few years ago. Pension purchases accounting for 26% of new top-rated debt in
READ MORE... →Salient to Investors: Linda Yueh at Oxford University said: The Chinese stock market is not very important to ordinary Chinese because at most only 50 million households invest in it, and they average less than 10 to 15% of their assets. Retail investors follow the herd so volatility is endemic in
READ MORE... →Salient to Investors: Michael Snyder writes: Global debt is at record highs, too big to fail banks have never been more reckless, and global financial markets have never been more primed for a collapse. Most people lack the patience to wait for long-term trends to play out so if the stock market is
READ MORE... →Salient to Investors: Tyler Durden writes: Jason Zweig at the Wall Street Journal recently described gold as “like a pet rock” and said owning gold was an act of faith. An article by Floyd Norris in The New York Times in 1999 slamming gold was followed by a 650% rise in the
READ MORE... →Salient to Investors: After decades of strong performance, coal producers are starting to fail faster than anyone expected. Walter Energy is filing for bankruptcy, Alpha Natural Resources was delisted from the NYSE due to its low share price. Arch Coal implemented a 1-for-10 reverse stock split to avoid delisting. Coal prices are
READ MORE... →Salient to Investors: David Stockman writes: Google’s unwarranted market cap gain last Friday – 75% of the 9.6% gain in net income from the prior quarter was due to a lower tax rate and a cutback of ballooning G&A expenses – easily passed in one day the entire $50 billion market cap of Caterpillar, though only
READ MORE... →Salient to Investors: Michael Pento at Pento Portfolio Strategies writes: In not allowing participants to sell stocks, China has fallen off the free market wagon. The same China that believes that economies grow by building empty cities. China’s actions are the antithesis of capitalism and free markets so it shocking to
READ MORE... →Salient to Investors: Charles Hugh Smith writes: Building new gleaming headquarters generally marks the top of a bank’s fortunes. So Facebook’s glamorous new headquarters, Apple’s under construction “spaceship” campus, Google’s plans for an ultra-modernist headquarters may indicate excessive confidence in endless growth of revenues, profits and valuations. Projections based on permanently parabolic growth
READ MORE... →Salient to Investors: China’s “new normal” of slower but better growth is a battle for survival for many businesses. The HSBC/Markit PMI shows that factories have cut jobs for 20 consecutive months, May seeing the biggest cuts since the global financial crisis. Read the full article at http://www.wsj.com/articles/for-many-firms-chinas-new-normal-spells-doom-1437355230 Click here to receive free and
READ MORE... →Salient to Investors: Fareed Zakaria said: History shows that the more countries integrate within the global community, the less incentives they have to be spoilers. Iran and the US share common interests on the threat from ISIS, the stability of Iraq and Afghanistan. The most successful and dominating countries in
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