Morning all,

I don’t intend to waste too much Xmas shopping time with this email, but hope of a settlement to the great bluff is squeezing markets higher..of course Gold fell on doubts of a settlement..go figure, but the upshot is our market will try for 4650 as I have been suggesting for some time. Hope is a powerful force..Dan Brown based a whole book on it..remember him…anyway the market loves moving in the path of least resistance and that is up…we may even go through 4650 and head towards my optimistic old target of 4750…

Enjoy the ride! Remember a rising tide does tend to lift all boats but some are still dogs and strength should be used to get rid of them!

Idea of the Day

 

Yesterday CBA bought Aussie Home loans…now there is a competitor that is listed pays 7.6% yield fully franked ..well managed and growing with a great $45bn loan book…MOC…maybe a good time to look at this one again…$210m market cap ..and 4.6% of the market…plenty of upside and a great distribution channel that is independent from Aussie!If rates continue to fall..housing will be stimulated..more mortgages..more business ..more profit..This one is a buy!

Things to make me go all Xmassy!!

1.Billabong out of a trading halt as money lobbed on the table at $1.10 and a trading forecast of unchanged conditions….I would expect the company to vigorously talk the price up but gets trickier when it’s an inside job and they have struggled to convince anyone the last time!Or the time before that ..or the time before that!!

2.Gun sales in the US Soar!

3.The market is continuing to drag in money from the sidelines as deposit rates drop..this will continue..if you can borrow at 6% and get a higher yield fully franked in the market why wouldn’t you!!

4.Gold should be going up..it’s not ..something wrong with this…too late to sell gold miners so best gird your loins and look through this weak period..there will be more consolidation in this sector to come…

5.The New Year will see more money jump from deposits and the retail investors as they wake up to the market offering far better returns than anything else…TLS still a no brainer!!And of course the banks!

6.Mike Smith from ANZ pockets $20 for the year..nioice!!

7.Facebook has run into a barrage of fury for changing its Instagram policy allowing it to sell your pictures..gotta love these guys..anything for a buck.’.its free and always will be’…yeah right!!Like saying trust me I am a stockbroker…

8. Opposition Leader Tony Abbott says has not read the week-old judgment of the Peter Slipper case because he has been doing “very important things for the people of Australia” in Britain….by staying there perhaps!!

9. China has set its initial target for economic growth at 7.5 % for a second year and tightened its inflation goal to the lowest level since 2010, two bank executives and a regulatory official said.

And finally………….

The four stages of life – You believe in Santa Claus – You don’t believe in Santa Claus – You become Santa Claus – You look like Santa Claus.

Have a great day and good luck to all the parents who have a son or daughter getting their HSC results today and tomorrow…scary times indeed

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.