Morning all,

Have you been naughty or nice this year. Bit like asking yourself do you feel lucky punk? Well do you? Equity markets continue to rally into the Xmas break. No Fiscal Bluff is going to stop this baby! The news is coming thick and fast and is mostly good.US jobs numbers were pretty ,Chinese numbers are turning and Greece is sorted, what’s not to like .Even Egypt seems to have cooled down somewhat. Events in Italy where the ‘Full Monti’ has announced his plans to go to an early election will not be enough to shatter the feeling of good will. What’s truly scary is the ‘Bunga Bunga’ King is making a comeback, much like Shane Warne’s I suspect, but scary none the less..actually I am not sure which is more scary Berlusconi’s face or Shane’s ..I think they have the same surgeon…Ashley and Martin perhaps. I have been saying 4650 by Xmas ..its only 100 points ..couple of good days should do it.15 today will help.

A muted start to the week I suspect but more of the slow burn than the whoosh…few things happening this week with a FOMC two day meeting and a few numbers out of China to focus the mince pie addled brains as party season kicks off in earnest.

Ideas of the day

The usual suspect banks and TLS will continue to rally but expect the cyclicals to do well…the bombed out industrial sector may be worth a look as value plays…

One metal to look at for 2013 may Copper and Copper plays… a few spring to mind but we have a piece in today’s research on OZL which may be worth a look…as China pulls itself back out of the trough we should see the copper price benefit..this will drag up Copper stocks..SFR has also fallen away a little so again might be worth putting on the watch list..although if you own OZL you do get a SFR kick as well!19% owned by OZL…of course we may see better times for BHP as a copper stock too plus looks like the US is waking up to selling Gas to Asia..watch out Aussie gas suppliers…and BHP spent $20bn on Petrohawk in the US which is all about gas! Maybe two reasons to own BHP again!

Things to make me go all Messi!

1.Lionel Messi is a the one and only as he surpasses Gerd Muller’s record 85 goals in a calendar year. We salute you! And Chelsea finally win!

2.If you put all the Gold that was ever mined together it would be a block about 20m3….not even a big house…and that’s all the Gold ever!!!Check out this video of the Bank of England Gold vault…

3.As complacency grips the financial markets not just in equities but in Gold and currency too…VIX drops 4% on Friday to under 16 again!!

Courtesy of www.zerohedge.com

4.Apple continues to fall..and will do ..they have lost the edge…their competitors have caught up, copied and just do it better now…facebook rallies though…nah ! still don’t see that one lasting.

5.Canada approves a couple of big overseas takeovers worth $20 billion  and reports say it may spark more foreign acquisitions of natural gas producers in the country while capping state- owned control of Alberta’s oil sands.

6.Channel TEN comes back on today after its rights issue..the Rinehart cowboy has tipped in her money so they are all in this together! Should be an interesting opening to say the least!!

7.Government starting to soften us up for the inevitable deficit …the only thing that will save the surplus is creative accounting…not sure even that can manipulate it this time..although maybe they should talk to the Communist party in China about data manipulation..they are pretty good at it but then no one argues and they have no Tony Abbott or Joe Hockey..there’s an idea maybe we could export those two to China!!

8.Another stab in the side for the Mining services companies as MAH looks to have gone into a trading halt pending a capital raising!!Look forward to that one!!

9. With 11,700 machines in operation across Australia Woolworths pubs and gambling venture, ALH, runs more poker machines than six of the largest casinos in Las Vegas combined.And what it earns from its gaming arm has changed significantly in recent months. According to one industry estimate, Woolworths is now on track to earn more than $200 million a year from gaming. All this from the Fresh Food people!

10.A few things bubbling away in the Property Trust sector with Australand receiving an approach from GPT on Friday night for the company bar the residential side of things….this may set a few people thinking so expect more as this story developes.

And finally………..

A priest and a pastor from the local church are standing by the side of the road, pounding a sign into the ground that reads:

“The End Is Near! Turn Yourself Around Now — Before It’s Too Late!”

As a car sped past them, the driver yelled, “Leave us alone, you religious nuts!”

From the curve, they heard screeching tires and a big splash. The pastor turns to the priest and asks, “Do you think the sign should just say ‘Bridge Out’?”

Have a great day today! back on TV on Thursday…if anyone watches SKY TV Business news!

Clarence

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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.