Former Fed Chief Greenspan Sees No Bubble in Dow 16,000 – Bloomberg 11-27-13

Salient to Investors:

Alan Greenspan said:

  • The US economy will grow closer to 2 percent in 2014 as it is restrained by a degree of uncertainty that is reducing investment, below the median economist estimate of 2.6 percent.
  • The US stock market is not in a bubble.
  • The economy is held back in part by some of the largest banks not operating efficiently and are using the scarce savings of the society, which is critical for economic growth.
  • Stock prices generally rise 7 percent a year for the long-term, and we have had no growth in stock prices for years.
  • Janet Yellen is very good but the Fed is going to have to stop expanding and move interest rates higher eventually, creating major political problems for it as it always has.

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Dow Tumbles Most in One Year After Presidential Elections – Bloomberg 11-07-12

Salient to Investors:

James Dunigan at PNC Wealth Mgmt said the fiscal cliff is  going to be very messy, though we’ll get there.

Alan Greenspan said the election perpetuated the political status quo and hasn’t increased the probability of resolving the fiscal challenges.

Barry Knapp at Barclays recommended cutting risk, and lowered his estimate for the S&P 500 end to end 2012 at 1,325 from 1,395 on concern a divided American government will delay a resolution over spending cuts and taxes.

James Paulsen at Wells Capital Mgmt sees a rush to safe haven due to the fiscal cliff and Europe.

Edward Mills at FBR Capital Markets said bankers were trying to delay hoping Romney would win so the floodgate will open for the final rules under Dodd-Frank to go into effect in the next three to six months.

Neil Strauss at Moody’s Investors Service said prolonged low interest rates is bad for insurers, resulting in lower investment earnings and profit compression on spread-based products, but higher reserve increases and meaningful writedowns of goodwill.

Lucas Pipes at Brean Capital Carret & Coal said there’s a perception that another Obama term is negative for coal.

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Greenspan Says Europe Like a ‘Leaking Boat’ With Holes – Bloomberg 06-29-12


Alan Greenspan said Europe is a leaking boat and political consolidation is the only solution to the region’s financial crisis – we are gradually moving in that direction.

Greenspan expects the “fiscal cliff” to be kicked down the road becauuse nobody wants all of those items to hit the economy all od a sudden – at the end of the day, something will be done.

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