Good morning,

As markets rally on the Greek solution it’s interesting to put their economy  into perspective

During the Great Depression in the UK, in the 30s, the fall in GDP was never more than 10% peak to trough..however “in Greece, gross domestic product is already down about 13 per cent since 2008, and according to experts is likely to fall a further 7 per cent by the end of this year. In other words, by this Christmas, Greece’s depression will have been twice as deep as the infamous economic catastrophe that struck Britain 80 years ago”….now that is scary..so despite the hopeful bailout part two eventuating I fear that at some stage either Greece will default or there will be a coup by the Military or others and kick out the Government and impose a whole new regime and with it all that chaos that would ensue..but for the moment the markets like to see the back of this issue and get on with the business of making money..

I tried not to laugh this morning when I heard a analyst from a French Bank get stuck into Aussie banks about their margins…sorry does anyone really listen to these guys anymore..credibility zero..they have done such a great job!

So back to reality and our market..after yesterdays stellar rise..ok it didn’t really do much after the jump, but still nice to see, we may have a quieter day today with a more muted response..there was no US markets last night as they had a Public Holiday.

Results continue to come thick and fast with AMC the highlight yesterday..the rumours of the end of industrials in this countries may have been slightly overstated as AMC did really well and their purchase of Alcan looks to have been very well timed..this is a good story and I have enclosed some research on it for your quiet moments today.

Executive summary below

Amcor (AMC)

Amcor reported that first-half profit fell 9.4% on year. Net income dropped to $204.9 million, the company said in a statement, but added that it jumped 14% on year to $304.7 million before one-time items. Sales revenue was $6.09 billion, down 1.5% on year. The company reported an interim dividend of 18 cents/share, up 1 cent. “The first-half result represented a record underlying profit, record returns and record interim dividend for the company,” Chief Executive Ken McKenzie said in a statement. “These results are particularly pleasing given the backdrop of subdued economic conditions globally.” The outlook for the second half is for stable volumes in mature markets and continued growth in emerging markets, he said.

One of my favourite sectors at the moment is the energy sector which seems to be waking from its slumber..Oil prices are pushing higher and certainly shows at the pump! BRU which I have been a fan of for some time and was in my top specs list is heading towards 2.00!!If you are looking for a very high risk play similar, then OBL (I am a holder) might be worth a look.. very small market cap and in the same region..nearology will help it..management not so good as BRU but could hit 5c from 3.6!Time to look again at WPL STO OSH etc for leverage to the oil price…AWE should also continue to attract admirers as will smaller energy stocks..COE I like too..good new management in place..will be $1.00 in a year or two ..or so they say!!

Enjoy the day and all eyes on Ricky this morning…better than watching the Rudd Gillard soap opera that is Canberra!!

Clarence

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