Morning,(still nothing good!)

A relative benign night last night with no big movers. The US market closed down slightly as economic numbers came in worse than anticipated and the horrible month of May drew to a close. Only a flesh wound though!. Once again Zombieland dominated with the random number generator working overtime to predict the outcome of the Greek election which saw the Pro Bailout party ahead in the polls.

 

Ireland voted ‘sea’(think that’s yes) in Euro poll..interestingly the Irish have no word for yes or no..no wonder they are in a mess..they use the same principle as Latin did, repeating the verb with or without a negative particle..so there you go..shameful thing is only 50% of them bothered to vote..come on, people die to get a vote and 50% of you can’t be bothered to pop down the street..this never ceases to amaze me how much the Western World takes for granted…have you no sympathy for countries like Syria or Egypt dying to vote literally!..anyway I digress, as usual I hear you utter…

We had the usual ‘Euro Clowns’ pontificating last night in Zombieland with ‘Super Mario’, getting stuck into ‘Moaning Mertle’. In fact poor old ‘Mertle’ looks increasingly unloved and isolated..never good to corner a wild animal they can do strange things! Euro set up is unsustainable says Draghi! Well we all know that!

 

At the moment investors are fleeing equity markets as transparency and integrity of markets seems scare..computer trading is becoming so dominate it’s a bot (ha) scary..I still remember that film ‘War Games’..tic tac toe…but as real people exit ,volatility will increase on nothing and logic will go out the window…  Thursday the 10-year US Treasuries touched a record-low yield of 1.5309 percent. Thirty-year bonds, for their part, fell to a yield of 2.6 percent, which is just above the all-time low they set in the midst of the Panic of 2008…safety is now a very crowded trade and when the scream goes up of fire ,the rush for the exit will be a mad scramble…at some stage equities will be so cheap that you have to buy!!!not yet though!

Things to make me go…yeah!!

1.There will be stories!!Echo and the Bunnymen’s(Star Casino) timing is impeccable ..under siege by Jamie and his gang and then announcing writedowns (30m)..not a good look…Packer is doing the takeover by stealth that Kerry Stokes does so well.EGM called shareholders to vote..vote no!

2.Investors are pulling money out of Spain faster than you can say “Hasta la vista baby”

3.Westpac are now calling for four rate cuts by Xmas…bonds around the World in places like the US and the UK are at all time lows…in fact yields in US have not been this low for 220 years.

4.Don’t miss the passage of Jupiter on June 6th    …Bit like a Euro solution!..also anniversary of D-Day when the Allies started to push back the power of Germany and set the World right..let’s hope history repeats!!!After all the Germans came up with the Euro idea and have been the only ones to really benefit…ask BMW and Siemens!

5.faceplant finally rallies to 29.60(up 5%)..was on Channel Ten this morning talking faceplant …hope those 27,000 viewers enjoyed the show..

6.One good thing about the global slowdown is petrol prices, which do act as a de facto stimulus as prices fall..bought ordinary stuff for 129c the other day..nice!!Brent has fallen 21%from its 2012 high!

7.I was lucky enough to chair a round table of entrepreneurs last night..truly inspiring guys..Pierce Cody ,Jason Pellegrino and Emma Isaacs take a bow…great people and true mentors..I would suggest those interested in the mobile digital world check out Jason Pellegrino from Google’s presentations on the subject..unique insights!

8.US GDP growth slowing, China slowing and India had a shocker…Zombieland will not grow for years to come so still feel nervous about prospects…any Treasury official that thinks we are immune from Euro Disaster should be sacked..idiot!

9.TLS has walked away from buying stake in Cons Media(Channel Nine)..thank god for that..let News waste their money…

10.IMF and Spain deny bailout talks..you know why..the IMF hasn’t got any money!!!

AND THE REALLY SCARY THING IN EUROPE IS, OUTGOING US TREASURY CHIEF TIM GEITHNER HAS AGREED TO HELP SPAIN…be afraid, be very afraid! It’s like Hannibal Lecter being put in charge of catering!

I am away until Mid June ..hopefully the meltdown will wait until I get back..Greek elections 17th June..I would continue to recommend the sell rallies strategy and fancy a move to 3850 before I would be starting to buy the market..there are some stocks that will defy the trend..talked about BRU and its friends the other day and up they went..BRU have rallied from 2.90 to 3.50 in a couple of days…so there is money to be made..keep an eye on the graphite space..its heating up and CDT is still yet to really move hard unlike some others like KNL and SYR which have gone ballistic..

Looking through the Research this morning it’s tough to find a buy on Morningstar..they are all accumulate at best..says it all…and that’s after the falls!!!

 

“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute”.
William Feather

Remember, let’s be careful out there

Enjoy the weekend

Clarence

XXX

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