Good morning,

After yesterdays falls on the back of Euro Downgrade worries, we should see some semblance of optimism today. The SPI was up 32 points so let’s hope so..

The RBA cut rates yesterday which should have come as no surprise to those of us who watch the price of Bananas fall dramatically..in ‘Aldi’ they are $1 a kg and Mangos are being given away..best tip for the day buy a tray of mangos for $10!!The fall in inflation was the missing piece that the RBA needed to see to cut rates…they are mandated to keep inflation within the 2-3% band and growth as high as possible and unemployment as low as possible so why wouldn’t they cut!!There is absolutely no reason not to!

The market seemed surprised and took it as a negative..shows how scary Europe is…what a load of rubbish..a rate cut is positive!!!It will help the market! Yields are going to fall on deposits and make equities look attractive..for months now there has been a flood of money to safety and deposits..if this starts to reverse and it will eventually ,investors will be looking for alternative places to get their yield..

Now I have banged on about TLS for so long I feel like a broken record..I have written about it here, sent research and even talked on TV about it..it has been the star performer ..for the year it is up 16% whilst the market is down 8.5%..the dog has changed! Of course the big question is where to from here..it touched 3.24 yesterday and I had been looking for it to get to 3.30 /3.40…however I still remain positive…the NBN world for TLS will be good…it can concentrate on its wireless and mobile networks as we all embrace smartphones and Ipads…couple the best network with continued turnaround in customer service PLUS the great yield and what more do you want..this is a BUY on any weakness at all..not exciting but will grind higher towards 3.50.

As for other stocks as we climb towards 4400 it gets harder but Banks, with their yields, it’s hard to go past them..Just pick your price you feel happy with. Remember BUY on the weak days..index is range bound 4000 to 4400 ..use that backdrop to guide your timing

Expect to rebound from yesterday’s fall but again no real enthusiasm ahead of the latest Euro meeting in the next few days.

Back on Sky TV tonight at 4.30….can’t talk about TLS again surely not!!!!!!!!

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