Salient to Investors:

James Paulsen at Wells Capital Mgmt said Apple is the story for the market and proxy for other companies and industries. James Cordwell at Atlantic Equities Service said IPhone sales are slowing because smartphones have saturated developed markets.

Almost 80 percent of the 28 S&P 500 companies so far reporting have beat analysts’ estimates, while Q4 profits at index companies grew 2.5 percent, the second-slowest quarterly growth since 2009.

David Kostin at Goldman Sachs said the drawdown risk – volatility – will deter investors from moving into stocks from bonds in 2013 even as dividend returns exceed fixed-income yields.

Jim O’Neill at Goldman Sachs Asset Mgmt expects a “great rotation” into equities. EPFR Global report investor deposits into global equity mutual funds in the first week of January were higher than any other period except one, and after withdrawing cash for the past six years.

The S&P 500 dividend yield at year-end was 0.56 percent higher than the 10-yr T-yield versus the record weekly high of 1.16 percent in 2009.

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