Salient to Investors: Matt Busigin writes: Corporate profits are going to be weak over the next decade, but it won’t matter very much to assets, and even be beneficial to labor. Consensus analyst estimates call for S&P 500 EPS in 2014 of over $123, 20% above the present value. Corporate
READ MORE... →Salient to Investors: Sudakshina Unnikrishnan and Jian Chang at Barclays say should China’s growth dip to 3 percent in the next 3 years, copper would fall more than 60 percent, zinc by up to 50 percent, and oil to $70 a barrel. They cite risks of slowing industrial production and of financial stress due to debt of
READ MORE... →Salient to Investors: Vincent Reinhart at Morgan Stanley said investors are the little white lab rabbits in the central bank experiments. Gilles Moec at Deutsche Bank said the potential for the dialog between the central banks and the market to fail is significant. Nathan Sheets et al at Citigroup said the UK
READ MORE... →Salient to Investors: Adam Bowe at Pimco said: Australian bonds are attractive after their worst run of losses since 1994 because the central bank will need to lower interest rates as mining investment drops. Pimco prefers to hold Aussie government bonds and high-quality spread assets like swap in the belief that interest
READ MORE... →Salient to Investors: Ding Shuang at Citigroup said local-government debt is a source of concern about China’s growth, and the new leadership is trying to give a clear answer as confidence in the Chinese economy from all sides has weakened. Ding said China has at least 12 trillion yuan of local-government debt. Zhu Haibin at
READ MORE... →Salient to Investors: Indian heart surgeon Devi Shetty has cut the price of artery-clearing coronary bypass surgery to $1,583, half of what it was 20 years ago, and versus $106,385 at the Cleveland Clinic in Ohio. Shetty said the current price of everything in health care is predominantly opportunistic pricing and the outcome of
READ MORE... →Salient to Investors: Demand for physical precious metals is increasing among Asia’s wealthy even as silver leads declines this year. Investors in silver are mostly private individuals, investors in gold are mostly institutions. 50 percent of silver is used in industry, versus 10 percent for gold. Cap Gemini and Royal Bank of Canada
READ MORE... →Salient to Investors: Anastasia Amoroso at JPMorgan Funds said any reduction in QE could be a slight drag in the short-term as the market is adjusting to rising rates and realizing rising rates do not mean the death of equities. Economists expect Fed tapering in September and US growth to have
READ MORE... →Salient to Investors: Banks, brokers and insurance companies make up 16.8 percent of the S&P 500, almost double the level from 2009 and versus tech companies at 17.6 percent. Banks were the largest US industry during the bull market that began in 2002, and financial firms grew to 18.8 percent of the index in
READ MORE... →Salient to Investors: Dominic Schnider at UBS said an ounce of gold will be worth 70 ounces of silver by the end of 2013 as demand fails to soak up an excess of silver. The average multiple over the past decade is 58, and last reached 70 in February 2010. Schnider said silver
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