Good morning,

The eternal question remains..are we heading out of the gloom and doom or is this just a lull before we head into more troubled waters?…for those of you who read my reports you will be aware that I believe that things will get tougher from here for a while..World markets have rallied considerably since the beginning of the year as ‘Zombieland’ woes have subsided…that is except Southern European Stockmarkets which have tanked..as they should!…the result is that I believe that stock selection is vital..just buying the market does not work…some of the rises this year have been spectacular despite the lacklustre performances of the ASX 200…we have had a few good winners in the last few weeks..COE,BTR,ERA,BRU etc…I will continue to try to find good stocks that will perform in these tough times…it’s not always easy but I will try..

To the markets over the weekend..the IMF has got another $430m from Countries to do with as it pleases..Spain looks like a target! French elections are proving interesting with the left wing candidate beating ‘Teacozy’ in the first poll with Marie Le Penn the National front candidate polling nearly 20%!!The second poll is May 6th when Hollande and ‘Teacozy’ go head to head! Think Carla’s hubby will be looking for a new job shortly!Still would be happy to stay home if I was him!

Things that caught my eye.

1.Man Utd drew and City won…

2.Inflation Numbers tomorrow will be the main focus for RBA rate decision.

3.Peter Slipper steps aside…hope Fair Work Australia is not conducting the investigation ..might take a few years!!

4.Air swing in A League final gets a penalty!

5.SPI up 7 but may be a little stronger.

6.World Steel Association reported that global steel production in March increased +2.3% month on month, to 132m tonnes. On a year on year basis, US steel production is up +5.4% and  Chinese steel production + 3.6% to an all-time record.

7.Bradken’s (BKN) profit warning (very, very disappointing).

8. Boral another one to confess their sins!

9. Greek elections on May 6th…likely to see more issues emerge with the bailout! No more pay cuts and no new taxes the order of the day..again! Back to the Future II..

10.VIX down 5% to 17.44 so no fear out there at all!

So to our market today..expect a modest rise as we have a Anzac interrupted week with the big numbers on Inflation tomorrow…the Commsec state of the States has highlighted that WA continues to roar ahead whilst the Eastern Rust belt is stuffed..I still believe that we are trading near the top so any new positions must take that into account. I have enclosed a special report from our research partners Morningstar of the importance of dividends..take heed BHP that’s why you are underperforming..that’s why Banks and TLS are sort..good yields and fully franked..not that hard really Mr Kloppers..

RBA will cut in May after benign inflation numbers tomorrow and we have seen the easy money for the next three months..

As I said “to be or not to be that is the question..”

We will find out soon enough!!Unlike Hamlet!

Henry

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