Morning all,

Its Monday so expect a muted positive day today as the market grapples with the implications of the woeful US jobs number on Friday. At one stage the market fell 170 before closing down a mere bagatelle of 40!The big winner on Friday was Gold. Now that’s a phrase we haven’t heard for some time, but the market may have got too pessimistic on the shiny stuff. And with a bad US jobs number meaning the Fed will keep the pump open for longer was good for Gold and inflation down the track. There are some big moves and lots of games going on in Japan, following the news that they are going to print more money than ever before. Interesting moves in currencies and bonds as they try to get their currency down as low as possible to make their export competitive. Not sure the Japanese experiment is going to pan out too well in the long run but the Nikkei has smashed 13,000 for the first time since 2008..

Anyway to matters more prosaic and our market. Fridays changes to the Super are a waste of time. They will never be in power to effect them so just ignore. We will remain positive today as the resources outperform the defensives again.

Idea of the Day.

My BDR idea from Friday has bounced to my target of around 85 from 75 so that’s good for all those that jumped on board…would be happy to take the money and wait for them to drift back under 80 again to re-enter.

I am fallible and my call to buy KAR at around 5.30 has been crap. The stock is 450…so not much fun here..but do feel that this one has been oversold so if you did buy some at 5.30..buy some more at 4.50…you will be rewarded ..and if you didn’t get set at 5.30 then well done..they are a lot cheaper now..

Things to make me go all

1.Few worrying developments over the weekend in Zombieland with Portugal having issues with their Courts and the Austerity and Italy..well no Government may be a good thing!!

2.From my friends at www.zerohedge.com… Rampant inflation, caused by debasement of the currency, government corruption and nanny state corrective action that makes matters worse. Declining trade, caused by wars to control the empire, massive military over-reach and ever increasing spending on the military – funded by increases in taxation on the citizens, especially those least in a position to pay.  Sounds familiar?        Well it’s not the present day US, Zombieland or japan but the Roman Empire in the 3^rd Century AD!!

3.The yen dropped to the lowest since June 2009 after the Bank of Japan (8301) outstripped forecasts and announced unprecedented measures last week to fight deflation, spurring concern the currency will be debased.

4.Billabong remained locked in buyout negotiations over the weekend with two interested parties. The company is considering an offer of A$0.60/sh from Paul Naude and Sycamore partners, and an offer of less than A$0.50/sh for VF Corporations. Sources close to the protracted talks were still cautiously optimistic yesterday that a deal could be finalised, despite the stock going into a trading halt last Tuesday and then suspension on Thursday.

5.Fairfax Media: the comprehensive corporate restructure of Fairfax Media announced last week will accelerate the sharing of sections and editorial content across The Age, The Sydney Morning Herald and The Canberra Times. In the wake of the restructure announcement, management consulting firm Bain & Company is continuing to push for more cost savings on the editorial side of the business. THIS ONE IS STILL A BUY!!

6.Beijing increases minimum down- payment on second home purchases to 70%, according to a statement posted on local housing provident fund management agency’s website today.China back today from its Ching Ming Festival.

7.And looks like the Australian Post Office is doing its bit to protect local retailers by raising its postage prices on parcels dramatically in some cases by 30%…of course it won’t affect the overseas Internet retailers just the local industry..won’t they be happy! Trade me and Ebay will be ropeable!

8.It is an existential question in France: When is fracking not fracking? The country is pushing ahead with plans to harness geothermal energy from smouldering rock deep in the Earth’s crust using drilling methods the oil industry says are like hydraulic fracturing, or fracking, which France outlawed in 2011.

9.And forget the posturing from Kim in Korea… “Many of China’s top economists are livid at what they view as an effective currency devaluation by Japan and are calling on the People’s Bank of China to retaliate by weakening the Yuan to defend itself in what they see as a new currency war.”

10.And Chelsea won at the weekend!! And in better news ‘Gazza’ was back watching from the stands at White Hart lane and apparently looking good..

And finally…….

 

A man walked into the office of the eminent psychiatrist Dr. Von Vermouth, and sat down to explain his problem.

“Well, you see, I’ve got this problem,” the man continued. “I keep hallucinating that I’m a dog. A large, white, hairy Pyrenees mountain dog. It’s crazy. I don’t know what to do!”

“A common canine complex,” said the doctor soothingly. “Come over here and lie down on the couch.”

“Oh no, Doctor. I’m not allowed up on the furniture.”

And please feel free to send me your jokes as I am getting cornier by the day!!

Clarence

XXX

 

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