Good morning,
Good to see ‘Super Mario’ back in the news. It’s been a while since we last heard from the Italian Stallion but last night he told the World that he was the man to persuade the Germans that Euro Bonds would be a great idea. (Good luck!) That was enough to help markets rally. Noises were made, rumours were spilled, computers kicked in and up we went..’Zombieland’ had good rallies after the disaster from the night before, whilst the US was more conservative and muted. Still ,all helps the bulls. However all the noises from the current Euro love in, are academic as in the end it’s the people who will decide what happens in Greece. They get to vote and then we shall see who is in and who is out!
Our market yesterday was anaemic at best giving up early gains as the Chinese PMI printed another weak number..soft landing or belly flop? We shall see.
Unfortunately the market is going to continue to flip flop around with more risks to the downside. The Aussie dollar is coming under pressure, the Government is well, we all know about that, and in a month we have a mining tax and a carbon tax.. Blue sky is hard to find!
I remain glued to the sidelines watching the computers tie themselves into knots whilst Insto funds and Private Clients watch in apathy. I recently read a fascinating book it’s called ‘The Fear Index.’. Its fiction, but tells the story of what happens when an Algo Trading Hedge fund uses a computer to automatically trade and the repercussions. It’s a good read, did it in a day! Would recommend for anyone interested in markets and the future of high frequency trading and Algo trading.
In stock land I remain a fan of high yielding stocks like TLS and the banks if you must buy. The NAB go ex div 31st May and if you buy today you effectively get 3 divs in 13 months. 270c (ish)of fully franked divs..Not too shabby. Now that’s not guaranteed, nothing is, but even in the midst of the GFC they still paid 70 c odd…there is a saying about Patriotism, which applies to dividends being the last refuge!
This week we have seen an extraordinary move after a hole in one from SYR which had a huge graphite hit..now graphite is the material ‘du jour’ due to its use in batteries for electric cars and other uses. So if you are looking for a punt on a stock ,that could put some lead in your pencil, then it may be time to look at Castle Minerals (CDT). They have a graphite project in North Ghana, which they say is World Class. I know don’t they all, but heard them at the Resources conference and they are on to something..very speculative but a resource due soon .so one to watch for at least.
Our market will be mildly positive into the weekend but don’t expect heroics until after Greek elections.Rallies should be sold into until you hear otherwise!
Things to make me go mmm!
1.What is it about being a Billionaire that makes you say strange things? Twiggy has joined that exclusive club saying Europe is a media beat up. That’s right blame someone else!
2.From the Bureau ,analysis identifies “advanced mining projects” worth a jaw-dropping $260.8 billion, as well as a second category of less-advanced projects worth $242.4 billion. Wow! Sceptical myself…
3.A Greek opinion poll showed the Syriza party, which is opposed to implementing Greece’s international financial rescue, building on its lead in voter support ahead of elections to be held June 17.
4.faceplant rallies 3%.Like!
5.UK recession deeper than thought!Well not me my brother tells me its really bad there..
6.DJs is now being looked at as a property play…not sure I would agree..who they gonna sell the stores to …not sure anyone would be that interested, still rumbles of Private Equity looking..grasping at straws .Retail is more hated than the Banks!
7.ECB President Draghi says Europe at a critical point..these guys are good!Glad they are in charge..warm fuzzy feelings all round!
8.VIX fell 3.5% last night to 21.5 which is still low in my opinion given the outlook.
9.US has a holiday on Monday..
And a message to all out poor suffering billionaires out there
You see money isn’t everything. And it often causes pain and suffering. I tell you all this because I am your Friend, and as your Friend I want to take away your pain and suffering. So send me all your money………. And I will suffer for you.
And for God’s sake smile you have so much when so many have so little!
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.
Beeks Downunder-Because not all financial news is boring! 