Salient to Investors:

Bruce Stout at Aberdeen Asset Mgmt says:

  • Optimism is too high for stocks and bond yields are too low
  • His fund’s fixed-income holdings are at the lowest level in 25 years.
  • The main problem is trying to get yield in a world where there is no yield, but paying up for it is not the solution. The bond market is rigged as you cannot have the worst economic fundamentals of all time and record-low bond yields. Lending money to Westminster or Washington today at 2 percent is foolish.
  • The fundamentals supporting the British Pound are worse than they were 5 years ago and the enormous amount of QE has meant a huge expansion of the gilt market while their quality has deteriorated.


Goldman Sachs this week said the US stock-market rally may last at least another 2 1/2 years. Bill Gross at Pimco said two weeks ago that the 30-yr bull market in bonds has ended.

The MSCI World Index is at 17.1 times earnings versus 13.6 two years ago.

Read the full article at

Click here to receive free and immediate email alerts of the latest forecasts.