Good morning,

The rally in the equity markets in the last month have forced all the strategists to revise their bearish views to bullish…looking at the markets they are certainly pushing up towards the top of their recent ranges..markets like the NASDAQ are pushing multi year highs as Apple drives it onwards.

Yesterday our market sprinted out of the gate and held its gains..which is good..there is no really bad news coming from Europe but the markets are waiting for US jobs numbers on Friday..that’s the next penny to drop..the US market is now trading on a P/E of 13.8 which is some 10-15% below its long term average..so there is some upside there. The results season has been somewhat Goldilocks..not too hot not too cold and a few surprises when the bears come home!

News of the Glencore/Xstrata merger will give punters and alternative to BHP and may focus analysts valuations on BHP which is still the Gorilla and should be the core of any portfolio. The other stock that is interesting is CPU…news from the US about the long awaited facebook sale is positive for CPU as they are the paper shufflers for this mammoth float..the shares rose 3% yesterday but buying around $7.50 on a pullback will prove rewarding!

Gold also had a good night with Uncle Ben in the US warning that the US faced similar problems to Greece unless it got its budget in order in the future…inflation and interest rates would be higher under this scenario..so Gold is good again..

NCM gave a positive presentation yesterday with some bullish forecasts on gold price and the company outlook so that should help the price.

SLR has long been a favourite of mine in the Gold sector and yesterday hit 3.80..for those who missed the boat they are currently trying to takeover a tiddler PRH..now if you buy PRH it converts into SLR at a ratio of 0.0882..at 30 cents for PRH that is a price around 3.45 for SLR..good discount..risk is the deal falls over but looks pretty sure to happen but you never know.

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

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