Good morning,

News overnight that Greece is set for new elections in Mid June did nothing to quell the uneasy feeling that is now gripping the World. The Political parties there seem hell bent on taking them out of ‘Zombieland’ and into their own night of the walking dead..not sure what happens if they cannot form a Government after the next elections ,maybe they get to toss for it…anyway the money is leaving Greece faster than you can say ‘Zorba’…Banks have been rupturing for weeks now, as Euros are withdrawn and popped under the bed…the end game here does look increasingly like a withdrawl from the Club Med and to open their own theme park, where no one works and everyone collects a state pension as the Government prints Drachmas!!If I were a Greek I would be contacting my cousins overseas and asking for a bed and a chance!

Still last night we had some economic numbers which were brushed aside with German GDP better than expected and even ‘Zombiezone’ GDP slightly better than expected…plus some encouraging signs in the US and of course the year’s biggest IPO facebook being repriced upwards!!!yeah right…I am a facebook user, as some of you will know ,as are my kids who use it all the time..no email ,no search engines everything within facebook ..but they do not hand over any money to them nor are they great clickers of company adverts…I remain sceptical of this story and feel that this is a signal for the hubris which is enveloping the social media space…

Back to more mundane issues like our market..well it looks pretty stuffed at the moment..anything that pays a yield looks terrific and any resource stock is gone..we are in the middle of a once in a generation resource boom yet all our miners look like they need life support..BHP at three year lows..whilst TLS ..well don’t get me started..I have been fan for so long it’s not funny and even went on Sky TV and said that if you weren’t long TLS you didn’t like money  ..well here they are at 3.74..7.5% yield fully franked and sold their worse business to the idiots in Canberra..David Thodey must go to bed with a permanent grin!!And that’s nothing to do with Mrs Thodey! So what now for TLS…as long as the market is on the nose TLS will stay strong..when it turns they will pull back..if you are not long I wouldn’t be chasing them and feel they are a bit overbought..but it’s hard to buy pullbacks when there aren’t any!!

Things that make me go doh!

1.Dollar continues to fall..SPI down 32…Gold down again..VIX only up 0.5% to 22…

2.Greeks heading to the Poles..not sure they have any money either.

3.White collar job losses continue with Rail Corp joining the fun..house prices will continue to slide..

4.Cave man Porn found in France…bien sur….where else..they did invent sex after all..if you believe them that is.

5.’Le Clog’ goes to Berlin to talk turkey with Moaning Mertle..plane delayed by lightning..maybe someone was trying to tell him something.

6. Former Treasury secretary Ken Henry says the Eurozone is highly unlikely to survive, and he has never believed the troubled currency union would work….now he tells us!!

7.Rebekah Brookes arrested and charged with unruly red hair!!

8.RBA must be itching for the next meeting so they can cut again!!!They have read this so badly it’s not funny!

Our market will remain under pressure and the spec stocks will be unloved big time…throwing baby out with the bath water in some cases but they are being tossed none the less..we will see 4200 on the SPI this week for sure and maybe 4150 early next week..yield to remain the focus ..why buy BHP when it pays nothing!!

 

Remain alert and have cash!!Still no reason to buy anything really…remain a fan of the Sell in May and go away strategy…60% of the time it works every time!

 

Q:Why did Greece fail to get the latest instalment of EU/IMF aid

A:Because no one in Greece works long enough to complete the application form.

Clarence

xxx

Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.