Salient to Investors:

  • Tom Stringfellow at Frost Investment Advisors expects interest rates to rise sooner than people expect, causing a knee-jerk reaction, but not at a rate that derails this stable environment.
  • Jan Hatzius at Goldman Sachs expects the Fed to raise rates in Q3 2015.
  • The S&P 500 is at 16.7 times estimated earnings versus the 5-yr average of 14.3. The VIX last week was at its lowest level since February 2007.
  • Bruce Bittles at RW Baird said valuations are stretched and sees little revenue growth, but the concerns about earnings are offset by a market driven by an improving economy and Fed guarantees that it won’t raise interest rates.

Read the full article at http://www.bloomberg.com/news/2014-07-07/u-s-stock-index-futures-little-changed-amid-rate-concern.html

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