Morning all,

Last night the froth started to evaporate after the “whatever it takes rally”.’Moaning Mertle’ must be away on holiday as she has been very quiet on Super Mario’s comments and left it up to unnamed Bundestag rumourmongers to deny banking licences for the ECB and more money for bond purchases. Geithner was in town to let the ‘Zombies’ have the benefit of his wisdom and I am sure put them on the right track…all you have to do is press PRINT! Easy!

After the stellar month of July it is all going to come down to the Central Banks Thursday gab fests..FOMC,Euro and BOE meetings will determine the mood for the next few weeks..I suspect disappointment ,only because they are so good at it..but let’s hope I am wrong..

Our market finished July with a solid performance especially in the stocks that I have favoured for some time..Banks TLS and anything else paying high fully franked yields..whilst the rest of the World is cutting rates to zero or even demanding payment to look after your money Telstra Continues to yield 7% fully franked. I was on the TV last night and again I questioned what’s not to like about this one..so to recap here are four easy reasons to like TLS.

 

1.Great Yield. No Zombie exposure!

2.Dominant Market player flexing its muscle now on pricing with handset subsidies and higher charges..Opposition in disarray..how many times will Vodafone offer me a new phone for free I wonder..

3.Government paying a lot for their Copper wires.

4.Growth of data inevitable..just need to look at all the heads down on the trains etc to see how we have become addicted to our Smartphones. I include myself in this unfortunately!

 

And finally good marketing campaign on Olympics..love the ‘Down Under’ ad!

In other news about the market, yesterday Campbell Brothers said what we had all been thinking ..the mining boom is coming to an end..all the negative talk, lower prices and global slowdown are taking their toll…they said it and the stock tanked down 10%.Market darlings cannot disappoint..I suspect this one will be worth a look at some stage but not quite yet. I have enclosed our research in this one..the outlook is the important thing and they are cautious to say the least..this will be a trend this season!!

 

Things to make me go all Michael Phelps!

 

1.Amazing performance at the Olympics from the Great Michael Phelps..truly one of the best ever!

2.What is Ian Thorpe wearing on TV..was is a bet or something.Looked like something from Bridget Jones!!A Mark Darcy Xmas special!!

3.faceplant continues to love up to its name…is it just me or are we all a little over faceplant..was fun when it was personal stuff now everyone wants to be my mate and flog me something…dont want that ..it was not the point of the site..still who am I to question their business model!…the market can do that…certainly the prize for the most overhyped IPO since Myers!At least we got Jen Hawkins!

4.RIO starting to cut jobs in regional headquarters.Sign of things to come..

5.Flash crash nearly back after a huge order to sell E-Minis in the US..in the last three seconds someone tried to dump $4bn of notional value..lucky it was the last three seconds or the market would have looked very different..so who was behind this..we will wait and see. If you want to ;earn more about this check out my good friends at www.zerohedge.com.

6.UK press says “Stay Calm and Carry on” as the Team GB Gold drought continues..apparently they are still hopeful of 60 medals..you can bet me..but fingers crossed.Got an email from kitbag to offer 50% off Team GB stuff!!

7.Breville Group popped up with a great result yesterday. Things are boiling along nicely in the US and Canada..and Australia avoided getting toasted as well..all good..upgrades to come.

8.Officail Chinese PMI out today will be closely watched…hope to see an improvement.

9.Mike Tyndall will be out Dwarf throwing tonight to celebrate his missus taking a silver in front of the family firm..go Zara!

10.Fairfax plumbing the depths…no wonder the media is so negative when their jobs are at risk and under siege from the Rinehart Cowboy…Cameron Cline makes some good points yesterday..we are too negative!!

 

Back on Sky again this afternoon on Market Moves at 5.30 if you want to catch the show.

 

 

And finally…

 

A bloke sees a sign saying “racehorse for sale: £10”. He pays the money, takes it home and lets it out the horse box. The horse gets out and gallops straight into a tree. Then he gets up and runs straight into a fence. The guy goes back to the farmer and says: “You’ve sold me a blind racehorse” and the farmer says: “It’s not blind; it just doesn’t give a toss.”

 

Have a good day

 

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.