Greetings from Downunder

Solid manufacturing reports from around the World showed that maybe things are not too bad after all..the SPI pushed up 49 points overnight so maybe after four negative days we have had the pullback and we will try for the 4300 level again..The Dow did give back some of its gains late in the day as Facebook filed for its long anticipated IPO together with some words of wisdom from Zuckerberg..this one I love..’move fast and break things’…   and this gem ‘the riskiest thing is to take no risks!!’No wonder this guy is worth $20bn…maybe the ‘Zombieland’ Politicians and Bureaucrats could take a leaf out of his book..and he is only paying himself a dollar a year..great value there.

To our market and the usual suspects will be to the fore..Banks and resource stocks will lead the charge and after yesterdays 35 point fall we should make up most of this week’s falls..

The media business has just got a whole lot more interesting as not only have we got Gina trying to build her stake in the press but the announcement yesterday from the High Courts will send a shiver through sports codes everywhere..the loss of exclusive internet rights will be a blow to TLS which has shelled out 150m over 4 years to be able to broadcast AFL games over the net..so it has wasted that money in effect..obviously there will be a court challenge but despite wasting the money it may be a win for them as now they will never have to pay silly money again for a sports (or for that matter)or any other exclusive event..if the decision stands then media companies will stand and fall by the platform they deliver content by..much like Apple..TLS has the best platform and network in Australia and the 4G rollout will ram that fact home to users, and so in the long term it will be a positive..I remain a buyer on any weakness. Yield is still fab!

I am recovering from my temporary bearishness and believe that provided the Greeks are sorted we have potential to move to 4500 before March..even the big strategists have all change their tune on markets and I believe that investors have been too cautious as teh headlines have whipped us all into a frenzy of negativity..The US does well in election years..it’s a given..if the Dow rallies so will we..it’s just the way it is!

In company news -Lynas got their long awaited permission for the plant in Malaysia so this one will move higher …FMG seem to have had some operational issues which may hold them back ..watch this space..

And once again from Zuckerberg…’the riskiest thing is to take no risks’

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