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Morning all,

Small rally on World markets in Friday will help sentiment slightly..The good news is that nothing horrible happened economically at least over the weekend. On the good news front the Boston Bombers were cornered and killed or captured. Only took thousands of Police and Swat teams to do it..mind you when I saw some of the pictures of the policemen I think they may need to visit Jenny Craigs..no wonder he could escape on foot!

Expect a mildly positive day today with maybe some buying in the financials again and the resources but it will be quiet…short week this week with School holidays and Anzac day so no one is going to get too excited.

Copper was weaker but BHP did benefit from the rise in the oil and gold price and Iron ore stayed flat so bargain hunting will still be around in these big miners…

Idea of the Day

Wish I had a new one!!

My advice is to continue to buy banks on any pullback as they have their results coming up…possibility to disappoint but the yield will support them …so pullbacks should be bought…but the market will go into neutral for a while…the doldrums await!

TLS are also going to $5…but that’s nothing to get too excited about…still feel that BHP and RIO are worth nibbling away at but both will weaken further I suspect over time..BHP is the same price it was 7 years ago and RIO 8 years ago…think Resources are for trading and banks are for keeping..

Things to make me go……

1.Chelsea drew with Liverpool 2-2 and Suarez bit someone!!And Mariners won the A league..congrats guys!!

2.From the World’s largest Bond investor ,Bill Gross on the outlook for the economy from his twitter feed…”The world looks 4 a new Keynes but w/ hi deficits & 0% rates there is only a long tough slog ahead @ best & the unimaginable @ worst.”

3.Few headlines out this morning on the state of the nation’s finances with deficits now forecast til 2023 unless Government takes tough action to stem the spending.

4..Santos has reported a slump in first-quarter production and revenue due to scheduled plant shutdowns, but it has assured investors its growth projects remain on track. Releasing its quarterly report yesterday, the oil and gas producer said output was down 8 per cent on the previous quarter and down 2 per cent on the same period last year.

5.Fortescue Metals Group chief executive Nev Power says he’s “a bit perplexed” about the negative reaction to Chinese GDP numbers implying slower economic growth. The Pilbara’s third force in iron ore expects the price for the steel-making ingredient to trade at $US120-$US130 a tonne “for the foreseeable future”.

6.Super Mario finally admits the blindly obvious “so far we haven’t seen any improvement in the situation,” so what do they do now…rate cuts more printing?

7.Seems strange but why would you not show up for your own party..Uncle Ben has confirmed that he will not be going to Jackson Hole this year as he has a scheduling conflict…what could be more important..washing his hair, getting his car rego renewed, doctors..come on Ben, it’s your party!!Wouldn’t be the same!

8.Now we know that Gold crashed last week…but in the real World.. punters are buying physical Gold like they can’t print the stuff fast enough..

According to today’s data from the US Mint, a record 63,500 ounces, or a whopping 2 tons, of gold were reported sold on April 17th alone, bringing the total sales for the month to a whopping 147,000 ounces or more than the previous two months combined with just half of the month gone……And in Japan.. Reuters is reporting that customers are waiting for up to three hours to buy gold…

9.Meanwhile in a land far far away…the Italians still haven’t managed to pick a new PM…apparently its now down to Rick Paper Scissors…but at least they have a President who has just been given another 7 year term…he is 87…now I am not sure I know too many 87 year olds that have the energy to run a country..let alone a 94 year old..good luck with that.

10.After a busy two days for the G20 ministers raiding the mini bar and swapping rooms at 4 am…they issues a massive communique which Zerohedge summarised as “if we all lie, same as nobody lying”….seems that the massive Japanese money printing game was not even mentioned!!!

11.BBG due to report back today after another 10 days of due diligence from the Head of their US biz..you would think he would know..he ran US for Gods sake…I feel sure we are due for more disappointment…

 

And finally….

 Thanks Marilyn

Have a great day..

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

 

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