Good morning,

Last week was a shocker..no doubt about it. The run on Greece and now Spain has increased the risks to the downside and that showed in how quickly the markets fell. Over the weekend the Gr8 in my opinion failed to address the issues and once again showed the lack of leadership that we have come to expect from the ruling class and come on where was China’s invite guys…. The World needs a plan, a hero, Robert Downey Junior.. and what we got was a picture of the World leaders watching Chelsea beat Bayern Munich! Whilst this was fantastic it doesn’t help the run on Europe that is starting. I continue to believe that it will get worse before it gets worse over there..the only question is how it will affect the rest of the World..I remain convinced that the Summer months will heat up with civil unrest the sport most likely to make it into the Olympic schedule…any rallies in the market as a whole will be short sharp covering rallies and should be sold ..they will not last..Bureaucrats in Europe have yet to grasp the magnitude of the anger out there from ordinary people..as Bob Dylan once sang..”when you have nothing you have nothing left to lose..’   How does it feel!

The debut of facebook was an exercise in propping the  like of which has not been seen for some time..the ‘Greenshow’ was a ‘Converse’ and it was in big time. ‘Greenshoe’ is an American term for when issues are supported after the initial market listing..facebook will go below $38..thats a certainty…like…dislike!

Things to ponder this fine Monday in Sydney

1.Queensland Government abandons its plans to expand the Abbott Point Coal loader Port…mining contractors have had their day…

2.MINING projects are too expensive..every man and his dog is saying that and projects will be canned and put on back burner..not good news for contractors but should underpin commodity prices.

3.If projects are cancelled ,then what do companies do with the dosh…buy other companies perhaps ,return money to shareholders ,there’s an idea!!
4.facebook lists…well supported at 38 bucks but for how long..personally I would rather own Apple shares but that’s just me..at least they make great products …anyone remember myspace..no thought not! Except Rupert!

5.Robin Gibb dies…another voice of a generation gone..Donna Summer last week..who’s next Boy George!

6.Craig Thomson will unveil his parallel universe …many “Zombieland” Officials, I think live in the same Universe..equally deluded!

7.James Hardie has posted a better than expected profit number…although it was boosted by tax office win..but a positive.

So what’s the Strategy in our market from here…PREPARE FOR THE WORSE—-HOPE FOR THE BEST!

The one thing that the Bureaucrats have in common is summed up by Jean-Claude Junker the Euro Zone finance minister in 2011…’When it becomes serious ..you have to lie!”

Hope is not a great investment strategy though. Gold may be!

Back on Sky TV this afternoon at 4.30!

Clarence

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