Morning all,

Did you miss my words of wisdom…probably not but I am back none the less…

Have we had the correction and it’s all back to normal again? Looking at the US markets you would certainly think so. As we wait for Uncle Ben to speak like the Delphic Oracle about Tapering, the US economy continues it seems to trundle along led by housing and cars! However Globally it does seem like this is the only bright spot out there. Zombieland shows no sign of improving for the foreseeable future, China is slowing faster than a VW Golf when the power goes and Japan, well, we shall see. Here in sunny Australia we are stuck in a transition phase. We all know that Tony Abbott will be the next PM, despite Corey Bernadi and his ludicrous outpourings. Not sure where we get these people from but we still have three months to go and in that time I believe the market will tread water .The plain truth is the US looks a better bet for money and that means the Global flows will find their way to the land of the free.

Expect more green today although after the afternoon rally yesterday it will be tentative…open with a rush ,fall back a bit then try to push higher if Asia stays strong…market is on constant look out for downgrades as tis the season to be truthful. Anyone who disappoints gets whacked big time…LLC was the latest victim…reckon it was overdone and they should be bought…Iron Ore is perking up so we should see a little buying in some resource stocks but the banks will lead the charge especially after Cameron Clyne said there would be no recession in Australia…I am going for an up 30 day, back towards 4850…

Idea of the Day

Did everyone take advantage of the recent weakness as I suggested to start to accumulate banks etc…of course not…it’s scary out there..why buy today when it could be cheaper tomorrow..the FOMO (fear of missing out) was not huge…there is no rush to buy…maybe not, but these puppies did get cheap and now they have all bounced substantially…my strategy remains to accumulate good quality high yielding stocks in the really bad days..when things improve they are the first to bounce…QED…anyway if you have missed it then don’t worry because I reckon you will get another chance but don’t miss it next time eh? I would say around early August we will see some more weakness…just seems to happen like that most years!

Things to make me go all Brazil!!!

1.Congratulations to the Socceroos last night in front of 80,000 screaming fans, they put Iraq away. Great result although Iraq did look dangerous from time to time, that is when they were not writhing on the ground in agony from a make believe foul. Must have been trained by Italian football players!

2.And well done to the Brumbies..another good result against the Lions.

3.Copper fell to the lowest in six weeks in New York as Federal Reserve policy makers begin a meeting that may indicate when the central bank will start curbing debt purchases intended to stoke the U.S. economy.

4.From Goldman Sucks on “Abenomics and the Three Arrows Policy”.. “any positive market reaction to unprecedented easing has largely been undone, leaving only high JGB yields and high volatility, and we are not in any doubt that overseas investors have started to lose their confidence in the BOJ”.

5.Few things out today ABS international merchandise imports for May,Westpac-Melbourne Institute Leading Indexes of Economic Activity …Final day of the two-day FOMC meeting, announcement early Thursday AEST.

6.ASIC made the observation on Tuesday as it confirmed that it would not push ahead with more stringent rules relating to dark pools and high-frequency trading. Dark pools are in effect private exchanges run by investment banks and specialist operators where ¬investors can trade shares among themselves, away from the open sharemarket. It is estimated that up to one-third of trades in the Australian market are conducted in dark pools or in internal “crossing systems” operated by investment banks.

7.Genting Hong Kong has increased its stake in Echo Entertainment, prompting fresh speculation about whether the Asian gaming group will take sides in a battle against James Packer’s Crown over Sydney’s casino market. Genting, owned by Malaysian casino mogul KT Lim, has increased its stake in Echo to 6.6 per cent from 5.22 per cent.

8.Lend Lease yesterday moved to clarify its outlook amid investor confusion over the construction group’s profit warning which spooked the market on Monday. It released another statement to the Australian Securities Exchange yesterday to stress that the company’s warning about weaker construction earnings for the 2013 financial year was not a profit downgrade. Maybe this one should be bought here..looks like the Investor relations guy needs a kick up the bottom!!

9. The Australian Shareholders Association has called for the chairman of Newcrest Mining, Don Mercer, to stand down over the goldminer’s poor performance since the $10 billion Lihir Gold takeover and the widely panned handling of the company’s latest market update.

10.And today is the first day of New Newscorp and Old Newscorp..will be interesting to see how these two trade today..one based on wood pulp the other on digital media!

•             Investors receive 1 New News (NNC) share for every 4 shares currently held in NWS.

•             Our valuation for the new company which comprises of the media and print assets is between $7-10bln market cap which implies a per share price of roughly $15.

And finally……

One day an Irishman goes into a pharmacy shop, reaches into his pocket and takes out a small bottle and a teaspoon.

He pours some liquid onto the teaspoon and offers it to the chemist.

“Could you taste this for me, please?” The chemist takes the teaspoon, puts it in his mouth, swills the liquid around and swallows it.

“Does that taste sweet to you?” says Paddy.”No, not at all,” says the chemist.

“Oh that’s a relief,” says Paddy. “The doctor told me to come here and get my urine tested for sugar.”

Have a good 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