Morning all,

First up, well done the Socceroos..and Lucas Neil 91 games, one goal!!But then again he is right full back..congrats Lucas!!Champion stuff!Now let’s beat the Iraqis next week to go to Brazil!!

Up early doing Sky TV again this morning…always fun to do but is hard to talk finance at 6.30 in the morning I must admit…I was asked my three favourite stocks at the moment .Had to admit I struggled, maybe it was the early hour, but with the market sliding continually it’s hard to out my head up out of the trenches and make any sensible suggestions!!You would probably say that it is always hard to get sensible suggestions from me…anyway the problem is that I believe that we are entering a nervous phase…I have long been telling all that would listen/read my emails that I think that the next quarter will get ‘Interesting’..at best I reckon we will go sideways and at worse, well worse!….there are a number of negatives out there at the moment..the decline of the Aussie Dollar ,which many commentators have wanted for some time ,is sapping morale, the Gillard ineptitude is sapping confidence, the Overseas markets are sapping buyers and the forthcoming election is sapping enthusiasm. The market hates uncertainty! Of course, it is a certainty that Mr Rabbit will be our next PM but there are other unknowns out there..there are German elections, the “tapering” of QEIII and the problems emerging of one of the poster boys of Turkey. Plus rising bond yields in those nasty Zombie Countries..all up its going to be a fun summer in the Northern Hemisphere…all eyes will be on Benny and the Inkjets when they get together for the FOMC meeting on June 19^th….and don’t forget that Ben is due to hand over the reins early next year..what will his legacy be?

So….after all that the three stocks I recommended were GEM,MOC and BDR ..I know I was under pressure….I also talked up the Aussie banks as defensive plays given their fall back from recent highs..BUT the one thing that has become apparent to me in the last few years in this computer driven market, is the trend is now not just your friend, it is your wife and bestest ,bestest mate ever!!The momentum trades go far longer and further than you ever thought possible..we saw it when everyone was chasing yields and defensives..WBC at 34 bucks really? Aussie dollar at 1.10!!You sure? TLS at 5.20..come on!! So as we have overshot on the upside, so we will overshoot on the downside ..with that in mind I would not be surprised to see us down to 4500 in the next month or so…it’s only a couple of hundred away!!and I have said we overshoot up and down!!!

Idea of the Day-Food ,Glorious food!!

Something to think about….now that the mining boom has gone bang,where do we look to next for the next boom industry…yesterday I read with great enthusiasm how farming in the US is now the stuff of banker rewards ..huge money being made by US farmers..read the article here….now it’s an old article but gets you thinking…here we are on the cusp of an emerging Asia who want to eat meat. We must be in the box seat to provide it …some of the big Multis are moving into here with the purchase of Graincorp from the US…so maybe agriculture is the new mining boom…I know we are big time already but with BHP stumping up the money for its Potash project ,it’s starting to look an interesting space..in that vein I saw a small Aussie company last night that is advancing a phosphate project overseas. I am still doing some research on this one but it looks very promising…more news to come…

Things to make me go all NSA!!!

1.Why is it that all US whistle blowers are so photogenic…Good to see Edward Snowden now on the run as the US Government moves to discredit him..love those pictures of his pole dancing girlfriend on TV this morning…watched Enemy of the State recently…scary film as it was made a while ago and it’s all coming true!!!as one infamous Nazi once said

You have nothing to fear, if you have nothing to hide–Joseph Goebbels

2.BHP Billiton is tipped to pump another $US500 million of pre-approval development capital into its Jansen potash project in Canada in coming months as part of a strategy that could lead to a full-blown $US12 billion development decision in 2015-16. Question marks have hung over Jansen since BHP stepped away from making new major capital commitments because of the squeeze on cashflows coming from the slump in commodity prices.

3.US agribusiness giant Archer Daniels Midland is promising further investment in Australian agriculture infrastructure, outlining a $300 million spend as it seeks to sell its $3 billion takeover for GrainCorp. ADM grains group president Ian Pinner, who is based in Illinois, is embarking on a fresh lobbying effort on behalf of the world’s biggest corn processor.

4.News Corp: shareholders have approved a plan to split the Rupert Murdoch-led company into two independent firms, one focusing on entertainment and the other on newspaper operations. The vote came as no surprise, since News Corp Chairman and CEO Rupert Murdoch and his immediate family hold a majority of voting shares in the media-entertainment powerhouse.

5.Seven West Media: has announced scores of redundancies at The West Australian newspaper in Perth, just weeks after chief executive Tim Worner took the reins of the media group.And expect Target to target a raft of job cuts today too.

6.Virtus Health which was sold by private equity last month, closed at 6.10 on Tuesday, well above its issue price of $5.68. Virtus, trading under the ticker code VRT, is the world’s first public listing of a fertility services business. Its shares were highly sought after during its book-build and priced at the top of the range at $5.68 each.

7.Meanwhile in a Galaxy far, far away…ie France…squatters have got far more audacious in their occupation of empty 4 storey building…love those socialist paradises!

The occupiers staked their claim to the building with pizza.When the first of 16 families entered a vacant four-storey office block in Paris one night last December, they placed repeated food orders so the neighbors could see from the comings-and-goings of delivery men that the address was occupied. Under French law, witness accounts of residency make eviction harder.But it was their next act that really had the building’s owner shaking his head in disbelief.

“What amazed me was when they invited in the housing minister a few days later,” said Spanish property developer Ignacio Lasa Georgas, who has temporarily lost control of his 7- million-euro ($9 million) office block between the Gare du Nord and Gare de l’Est railway stations.

“And over she came to give them her support.”

8.The IPO is back…yesterday we had Virtus,and in the pipeline is iselect which I hear has gone very well, harder to get than a labour vote…

9.PIMCO,one of the biggest bond managers, said investors should cut risk amid a more than 60 percent chance of a global recession in the next three to five years. Global bonds had their worst month in nine years in May, led by Treasuries, as investors sold debt in anticipation central banks will eventually scale back their unprecedented asset purchases.

10.And the see through black yoga pants continue to take their toll.. Lululemon plunged more than 15 % after the yoga apparel maker said its CEO Christine Day will step down….not sure she is totally to blame for the pants!

And finally……one for the British and Irish Lions..well at least the Irish..

Two Irish couples decided to swap partners for the night.

After 3 hours of amazing sex, Paddy says “I wonder how the girls are getting on”.

Have a great day..holiday in China today and I am off to the Gold Coast Friday!!Yippeeeeeeeeeee!

 

Clarence

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