Afternoon all..

Having returned from my overseas travels, it’s strange looking at a market that has barely changed and barely traded. The lack of volume and interest in Equities is quite worrying..the lack of integrity in markets and the rise of the machine has killed business, at least for the time being.

As we approach the Greek election, Central Banks are gearing up for what was once unthinkable..a Euro Exit..it’s certainly possible that Greece will exit the Euro and that will throw it into chaos. The more worrying thing is Spain..I caught up with the Four Corners from Monday night(well worth a look on ABC’s iview) and its look at the Euro. It’s a scary look at the seeds of the ‘Zombieland’ debacle and a sobering assessment of the future. A few quick facts.. Spain has more units for sale than the US ..25% unemployment and 50% youth unemployment..the first ‘bailout lite’ will be followed by more you can be assured of that…in one year they built 5m homes!!!Come on guys what were you thinking!!The greedy banks should be made to suffer…unfortunately it’s the people that do! As Sartre said, “When the rich wage war, its the poor who die”. And it is economic war!

 

There is a G20 meeting this weekend and hopes are high that courageous decisions will be taken (maybe they need Jim Hacker and Sir Humphrey). Germany has said that it cannot save Zombieland on its own..tried to take it over a couple of times though! Markets have rallied on the back of more money being printed…they have no choice..fiat money will be devalued..

 

As to our market..tumbleweed..crickets..that’s the only thing in town .I spoke to one Institution yesterday with $4bn under management and they had not traded for four days!!Brokers are retiring or being retired left right and mainly centre and its being described as a drought..volumes are pathetic and only the computer traders are doing stuff at the moment.

 

Before I went away I suggested that the market would hit 4000 and may go a little below..well it came to pass..so what now…waiting..waiting..until there is some positive news out of Zombieland until then it’s hard to see any sustainable rallies..we will get knee jerk short-covering rallies but these should be used to lighten the load if you get a chance..

 

Interest rates will continue to fall here and the market although looking a little cheap will continue to do so.If you don’t own TLS you should..just try to get them on a dull day,actually you are better off buying them when the marlet rallies as they usually fall then…on the down days they rally..safety of the yield is paramount.

 

Things to make me go mmm!

 

1.I would recommend Koh Samui to anyone! And wow it makes Sydney look expensive..even eating in luxury resorts..no wonder our tourism industry is stuffed..service and prices..

2.Gina Rinehart increases her stake in Fairfax..not sure why she would bother myself the share price has lost 85% in the last five years and what is going to turn it around? Nothing! Print is dead!

3.Having flown QAN I know why the share price is so low and they lose a fortune on International..another stock to avoid!

4.AUD back above parity..Spain is looking pretty bad!

5.Avoid the retail sector as online continues to cut their lunch..have a look at www.iconic.com to see why…landlords be afraid be very afraid.

6.Spanish bailout is NOT enough…Italy next as bond rates soar!!

7.I had the pleasure of hosting a function at a leading Sydney School before I left and was discussing entrepreneurship with an emphasis on the digital economy .This is the future, we need more investment in the digital world and start ups..why cant we produce another ‘Godle’ or ‘faceplant’ here!

 

This weekend is seen as a watershed with the elections..it’s not..no one will emerge with a majority and the horse trading will begin..whatever happens the ECB MUST PRINT money..the BOE MUST PRINT money ..the Fed MUST Print Money…wish I could print money!!!!buy printers!!

Will be more in the groove Monday !

Remember Plan for the worse ..hope for the best!

Clarence

XXX

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