Morning all,

The markets have been seduced recently by the’ hopium’ of stimulus across Zombieland ,the US and China. However this can only keep us at these rarified heights for so long before reality bites. Last night hot on the heels of the Alcoa number, we saw the market come to grips with a lacklustre reporting season in the US. Our market will also be in the grip of the AGM season in a short time and will struggle to push ahead meaningfully until we get another dose of ‘hopium’ that we all crave!

I recently wrote an article for Motleyfool.com.au talking about the Australian Economy as the Wile E Coyote moment …if you haven’t read click here…or of course sign up to my blog at www.beeksdownunder.com for all the fun!

Expect to see our market fall again today with a 20 point slide inevitable…we do have unemployment numbers today so that may prove a inflection point but with commodities easier and Gold unexciting as the Police say after a lorry load of toilet rolls  get knocked..we have nothing to go on!

Iron Ore has remained the one bright spot recently but expect that to wane now the shorts have covered perhaps..there is some build up of optimism with the Chinese change in leadership but I suspect the best gains on the Iron Ore have been made and would expect it to slip slightly to 100-110 range in the next month.

The market has slipped below 4500 and should test the 4450 level before stabilising…be patient and look to accumulate stocks you like in this pullback..remember nothing goes up forever…well maybe US debt but don’t get me started

 

Things to make me go all Pussy Riot! One out ..two still in!

1.Billabong management has stepped up its efforts to win over private equity suitor TPG, but it appears to be a case of too little, too late …still think this is worth a look at some price!!

2.Rio has all but ruled out a new share buyback program and admitted it does not have enough capital to invest in all of its value-adding growth options, as uncertainty continues over the short-term outlook.

3.Westpac is about to make a step change in its approach to investment in the region. As part of a business plan agreed by the bank’s executive committee, Westpac Institutional Bank under Rob Whitfield will significantly ramp up the earns from Asia by 2017.

4.From my mates at Zero Hedge…home of the conspiracy theory I must admit!..As we have painstakingly pointed out a number of times, the way the banking system works in most of the world is a complete fraud since most banks only hold a tiny percentage of their customers’ deposits in cash. The moment there are more than a handful of depositors wanting their money back, the bank has a big problem. This is happening nationwide in Spain….Andorra is apparently doing very well out of all this..who would have guessed that!

5.Lance Armstrong looks like he really was cheating all along….evidence mounts against him ..

6.News today that Geoffrey Edelsten  met a New Jersey woman on a web site called sugardaddygforme.com came as a big surprise to his wife..star of reality TV show Brynne…why is that a surprise!Not that he met someone else but there is a web site called sugardaddyforme.com!! Gotta love the net! And I am a buyer at 29 for his wife’s age…

7. Pallet supplier Brambles says it is on track to achieve its full year financial guidance after an improved first quarter sales performance. Brambles this morning said its sales revenue in the three months to September 30 was $US1.425 billion ($A1.40 billion), up three per cent from the same period in the previous year.

8.Spain gets downgraded by S&P to one notch above Junk…on negative watch too…and S&P says India has a 1 in 3 chance of being downgraded to junk despite economic reforms.

9.Nicole Kidman is struggling to look 32 for her role as Princess Grace of Monaco…not sure it’s gonna work this time..sorry Nicole…

10.And more startling news from ‘Zombieland’…France’s new Pres Hollande shared his mistress..Mon Dieu!!..is nothing sacred anymore in France! And with a Minister in his Government..bet the cabinet meetings are interesting!!!

And finally…..

 

“What do we want!? More research into a cure for ADHD! When do we want it!? Let’s play swingball!”

 

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.