Morning all,

The Overseas markets continue to grind higher with the US closing at a five year high..Expect the US market to continue on past 14,000 in the next few months. Our market will be a similar story…with interest rates so low and in some cases falling (Australia) the choice of where to put your hard earned or in most cases high leveraged money is shrinking fast..and no one wants to miss out on a year like 2012 again..so 4950 is very doable ….yield stocks will continue to attract buyers but the warm glow is spreading to others….

Let’s sum up the current environment for investing..

• China is looking better with now 7.9% GDP…the supertanker has turned!

• US will do a deal on its debt ceiling and the economy is recovering as housing leads the way..employment will eventually follow.

• Zombieland has acknowledged they have a problem and are taking steps to fix it..every Pollie and his bureaucrat is announcing that the region is sorted and getting better.(remember when it gets serious you need to lie!

• Interest rates are very, very low so shares look attractive…that’s a Worldwide thing and it is here to stay!!For this year at any rate!

• Japan is throwing more money at their economy…(won’t do too much to help but it’s good for concreters!)

• Local economy is appalling according to the Liberal party and Media but you know what 5.2% unemployment..good GDP at over 3% and interest rates at 3% from the RBA…doesn’t sound too shabby to me…I know the Government cannot be trusted but you know what things aren’t that bad..I only have to look at all the new cars out there to see that there is a fair amount of confidence still in our economy…

• So whilst your deposit rate is falling, spare a thought for bank shares which are still yielding over 6% fully franked and TLS the same…

Idea of the Day(NAB)

If you want to take advantage of the high yields and a stock that has potential to turn around..maybe NAB should be on your watch list…the market is baying for a deal to be done with its UK business and let’s face it if the business was sold even for a quid the stock would rally big time..look at RIO and BLD for fine examples of bad news is good!6.8% fully franked..come on this is just so begging for it…if you haven’t got NAB in your portfolio you do not like money!!

Things to make me go all Arm Liestrong!

1.The really amazing thing about the Armstrong interview on Oprah is that finally there are viewers on her channel!

2.It seems 12 inches is not really 12 inches after all as Subway says that its ‘Footlong’ is not really a foot long…Of course this has been known by women for many years.

3.Chelsea beat Arsenal and Man United draw…there is hope…

4.Expect a big rise today from QBE as it too moves to cut 700 jobs…this strategy is starting to be catching.Not great news for Sydney property markets as another 700 white collar workers bite the dust!!

5.News last week that Big Tom from RIO has been sacked after writing off $14bn was enough to get RIO rocking and Rolling…market seems to like the new man in charge…let’s hope they have locked away the cheque book and the Egos..great to see the Rinehart cowgirl giving new man Sam some advice and everyone telling him to bring the company home…

6.Obama takes the oath..I promise to increase spending whilst trying really, really hard to raise more money..I promise to try and get the US debt up to $20 trillion before I leave office …interestingly 1.5 m Democrats went to the Inauguration but only 15 had to skip work!

7.The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, fell 8.2 percent to 12.46, the lowest level since April 2007.No risks out there anymore!!

8.Even BlackRock’s head strategy guys gives us the Heart Foundation tick of approval.. — Australia looks attractive with well-developed financial sector, banks look sound; is weathering slowdown in Chinese growth, Russ Koesterich, chief investment strategist at BlackRock, said in phone interview.

9. Scrap metal recycler Sims Metal Management fears managers of its British operations could have defrauded the company.Sims says it has discovered that the carrying value of inventory at its Recycling Solutions business at Long Marston and Newport in Britain was overstated by about $60 million….should be a positive for the stock in this market!!!Well maybe not!

And finally….

Ol’ Fred had been a religious man who was in the hospital, near death. The family called their preacher to stand with them. As the preacher stood next to the bed, Ol’ Fred’s condition appeared to deteriorate and he motioned frantically for something to write on.

The pastor lovingly handed him a pen and a piece of paper, and Ol’ Fred used his last bit of energy to scribble a note, then he died. The preacher thought it best not to look at the note at that time, so he placed it in his jacket pocket.

At the funeral, as he was finishing the message, he realised that he was wearing the same jacket that he was wearing when Ol’ Fred died.

He said, “You know, Ol’ Fred handed me a note just before he died. I haven’t looked at it, but knowing Fred, I’m sure there’s a word of inspiration there for us all.”

He opened the note, and read out loud, “Hey, you’re standing on my oxygen tube?”

Have a good Monday

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.