Morning all,

Another Tuesday and another surge on the Dow making it 18 Tuesdays in a row!!Well done…this was despite the Fed Chief Plosser coming out and saying that the QEIII should be wound back starting next month. Interesting though commodities fell but equities remain the place to be..Expect to see us push ahead today maybe only 20 or 30 points but the trend is up at the moment. Copper fell 2% Iron Ore slipped and Gold too plus Oil was weaker so no good news for commodities although some of the sting will be taken out by the falling Aussie Dollar!! Currently around 99 cents..Oh how the mighty have fallen and should continue to fall too!

CBA has come out this morning with a March Quarter trading update which looks positive…another profit of $1.9bn for the quarter with cost under control (that usual means sackings) and conservative lending in a low growth environment…so should help the share price.

Industrials and Financials will be in focus as resources will underperform as usual…

Idea of the Day-Tax Loss Selling and FXJ

Now as we approach the end of year the resource sector will start to suffer from some Tax Loss selling….it’s a good time to plan early for this as there may be some good bargains around as the selling snowballs towards the end of June..however to take advantage of this maybe it’s time to think on this now!!Going early may be a good option to cash up waiting for some end of year bargains!!Just a thought…

And looking at a sector I like at the moment, I find it amazing that FXJ that has Domain, Drive, Mycareer and other digital sites is valued at $1.5bn whilst REA is $4.4bn,CRZ is $2.3bn and SEK is $3.5bn….not judging who is better as it is obvious FXJ is a second in these segments but if they could just get it right in one of them ,think of the upside!!!I still like FXJ!!Nearly $10 bn opportunity there my friends!!

Things to make me go Swanny,how I love yer ,how I love yer,my dear old Swanny!!

1.Budget…whatever…far more intelligent people than me to write on this subject..let’s face it these guys won’t be around long enough to see most of it in…now we will see what Abbott keeps and ditches…

2.Australia’s AAA rating remains unchanged despite the federal government handing down an $18 billion deficit. The world’s two largest ratings agencies have retained Australia’s AAA rating due to the nation’s low public debt and prudent fiscal policy in the medium term.

3.Petro China has walked away from a $185 million bid for Queensland coal-seam gas company WestSide Corporation as high construction costs and increased environmental hurdles reduce the appeal of Australian projects. The Chinese company, which has three Australian LNG projects yet to be approved, told WestSide its non-binding offer, which was lodged in November, had been withdrawn “because the general situation in Australia has changed so much”

4.Caresales.com RBA cutting rates, ABS employment report, lower unemployment, higher participation rate may boost car ownership demand: BBY analyst Mark McDonnell in a note. Latest Federal Chamber of Automotive Industries data shows national sales up 5.6% YTD in April, monthly sales up 7.6% Y/y BBY rates Carsales BUY, raises PT to A$11.63 from A$10.18.

5.Pimco’s Bill Gross has tweeted this gem…

PIMCO        ✔ @PIMCO

Gross: Never have investors reached so high in price for so low a return. Never have investors stooped so low for so much risk.

Says it all really!!!!Sorry Winston!!

6.BHP Billiton’s new chief executive, Andrew Mackenzie, has outlined just how deeply he intends to cut into the company’s capital expenditure over the next three years – slicing 18 per cent from the 2014 budget, with more to come in 2015 and 2016.

7.Todays disaster… Metals recycler Sims Metal has added further inventory write-downs following its earlier provisions following fraud at its UK operations. The company today outlined further provisions totalling $115 million, of inventory and landfill provisions in the UK. This comes on top of provisions totalling $354 million made earlier this year against its UK and US operations and $78 million of inventory charges.

And finally…….

MORALS TEST – READ CAREFULLY

This test only has one question, but it’s a very important one.

By giving an honest answer, you will discover where you stand morally.

The test features an unlikely, completely fictional situation in which you will have to make a decision.

Remember that your answer needs to be honest, yet spontaneous.

THE SITUATION:

You are in Queensland, Cairns to be specific.

There is chaos all around you caused by a cyclone with severe flooding. This is a flood of biblical proportions.

You are a photojournalist working for a major newspaper, and you’re caught in the middle of this epic disaster.

The situation is nearly hopeless.   You’re trying to shoot career-making photos.

There are houses and people swirling around you, some disappearing under the water.

Nature is unleashing all of its destructive fury.

THE TEST:

Suddenly you see a neatly dressed woman in the water.   She is fighting for her life, trying not to be taken down with the debris.

You move closer.   Somehow the woman looks familiar. You suddenly realize who it is. It’s Julia Gillard!

At the same time you notice that the raging waters are about to take her under forever.

THE OPTIONS:

You can save the life of Julia Gillard or you can shoot a dramatic Pulitzer Prize winning photo, documenting the death of one of the world’s most powerful socialist women, hell bent on the destruction of Australia …

THE QUESTION:

Here’s the question, and please give an honest answer … Would you select high contrast colour film, or would you go with the classic simplicity of black and white?

Have a good day,

 

Clarence

XXXX

 

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