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Tragic news overnight….
“Fast and Furious 16” has topped the US box Office..followed by “Hangover 17”….no really this is the last ones for sure…fast cars and drugs and booze…maybe that’s what we want after all….anyway….
Quiet night overnight with London and the US closed .Zombieland was stronger and Canada had a good day after a big healthcare bid and Gold climbed. So we should try for a more positive start today..Once again my call of a slight up day yesterday was wrong! Still today we may see some nibbling away at things..As readers will know I have been a fan of the ‘Sell in May and go away’ strategy again this year, now its taken a while but the market has now fallen this May from its high above 5200 to now around 4960 so got something right..we have had some big falls in the bubble banks and other ‘defensives’..to give you some examples from their recent highs WBC down 16%,ANZ down 13%,NAB down 9% (still cum div!!) and CBA down 8%…other big losers include WOW down 10%,WES down 8% and TLS down 5%…..now in these computer driven times there is a tendency for things to overshoot as the momentum carries them on…we saw it on the upside and now we have seen it on the downside…I would recommend that those looking for income and yield have a look at the banks at the moment…ok so they have their problems and they are still a tad expensive but you can only buy them when there are sellers around…be honest when the index was 5200 and the press was full of wonderful stock market on highs stories how many of you thought you should buy something as you didn’t want to miss out but thought they were expensive…and you vowed that you would buy them on a pullback…well we have had that pullback so what are you waiting for!!
Quiet day today and it’s the Tech Conference so should throw up some good ideas…seems to be a pretty popular conference with lots of punters going!!Must be a sign!Last conference we had was Mining Services..
Idea of the Day
Income Hunters saddle up and in the immortal words from Randall Mortimer in Trading Places…”get back in there and buy Mortimer!!”
Fully franked “Grossed up” RBA Cash rate
Telstra 5.8% 7.56% 2.75%
Westpac 7% 9.8% 2.75%
ANZ 6% 8.4% 2.75%
CBA 5.5% 7.7% 2.75%
NAB 6.5% 9.1% 2.75%
WESs 5.2% 7.28% 2.75%
SUN 6.2% 8.70% 2.75%
What is not to like if you are looking for that income..they could get cheaper but got to dip your toes in the water at some stage.
Things to make me go all….Bill Gates
1.Bill Gates is in town and on the ABC tonight…should be interesting…the Bill Gates foundation has tried to eradicate Polio from the World…in 1988 there were 350,000 deaths from this disease…last year 223…if only Windows had been that effective eh? Great work though Bill.
2.David Jones’s CEO Paul Zahra is standing by the retailer’s ¬strategy to restore profit margins rather than chase sales through discounting, even though quarterly sales fell to their lowest level for at least six years after a warm start to winter. “We are out there to make a profit, of course we want to increase sales but we don’t want to increase sales at the expense of profit.”
3.Telstra offered to help accelerate the rollout of the national broadband network in an audacious bid to capture more construction work in the massive project and safeguard a multibillion-dollar windfall for its shareholders. The offer, which could feasibly have added thousands of homes to the NBN rollout plan ahead of time, was in limbo for months because NBN Co could not agree to commercial terms over completed work with Telstra.
4.Whitehaven Coal Short interest reached record 30.2% of free float on May 23, most shorted stock in ASX 200 according to latest Market data.
5.Chinese Premier Li Keqiang said his country is confronted by “huge challenges” as it opens up the economy and that the new government’s reform measures will be accompanied by tapered-off levels of growth.
6.Investors are pumping record amounts of money into U.S. balanced funds, whose freedom to buy stocks and bonds made them barometers for gains in the biggest bull markets of the past half century.Managers led by Capital Research & Management Co. and Invesco Ltd. received $35.2 billion from January to April, the most in any four months.
7.Valeant Pharmaceuticals International Inc. (VRX), Canada’s largest drugmaker, is close to acquiring Bausch & Lomb Holdings Inc., the eye-care company owned by Warburg Pincus LLC, for about $9 billion.
8.Crystal Palace won Football’s biggest payday last night with an eleventh hour penalty to win promotion to the English Premier League in front of 82,000 fans at Wembley..now forget the Champions League ,forget the Premiership..getting promoted means an extra $180m!!!!That’s a lot of money for a club…well done Palace..wow thetre is a lot of money in football in Europe!
9.As everyone bemoans the fact that Aussie resource projects have priced themselves out of the market, Woodsides Peter Coleman is now pining his hopes to develop the Browse Basin on untested floating LNG platforms..three times the size of an aircraft carrier..6 football pitches long!!wow!…unfortunately in the rush to give every mine worker a Jet Ski we seem to have allowed our country to become completely uncompetitive!!
10. Moaning Mertle is busy sucking up to China at the moment as Li Keqiang comes to town…she has said she wants to reach an agreement with him over tariffs and does not want a trade war..unlike them…and seems the UK and Germany is in agreement to not slap but taxes on Chinese solar panels…that must be a first!!
Four old timers were playing their weekly game of golf, one remarked how nice it would be to wake up on Christmas morning, roll out of bed and without an argument go directly to the golf course, meet his buddies and play a round.
His buddies all chimed in said, “Let’s do it! We’ll make it a priority; figure out a way and meet here early, Christmas morning.”
Months later, that special morning arrives, and there they are on the golf course. The first guy says, “Boy this game cost me a fortune! I bought my wife a diamond ring that she can’t take her eyes off it.”
The second guy says, “I spent a ton too. My wife is at home planning the cruise I gave her. She was up to her eyeballs in brochures.”
The third guy says “Well my wife is at home admiring her new car, reading the manual.”
They all turned to the last guy in the group who is staring at them like they have lost their minds.
“I can’t believe you all went to such expense for this golf game.
I slapped my wife on the bum and said, ‘Well babe, Merry Christmas! It’s a great morning — intercourse or golfcourse” ?
She said, “Don’t forget your sweater.”
Have a good day
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