Morning all,

All is right with the World as China yesterday showed stability and pulled out of their dive. Global markets rallied on manufacturing numbers from the US and House price data. Tapering thoughts were pushed to the sidelnes but they will be back.

Jackson Hole this weekend but with no Ben, “King” Carney or “Super Mario” just won’t be the same..in fact not sure why they have bothered having the thing!!

I think it’s fair to say that reporting season has generally been ok so far..yes we have had a few misses and some savage reactions and of course the words ‘challenging and difficult conditions’ have been mentioned ,but on the whole it’s been supportive of current prices. Although the outlook is cloudy, getting the election out of the way will help..I still feel that we could see a push to 5200 before I get cold feet…see my idea of the day below..we just have to start adjusting to a world of higher rates and hopefully higher economic growth to justify the rate rises…one without the other won’t work for long!!!So if you can get nearly 3% on US 10 year bonds are equities so attractive that is the question..

Expect a strong start to the day with the SPI up 43 points, gold and Oil better too. Not sure the enthusiasm will last though as it’s been a long week with results fatigue setting in!Probably settle around 5110 at the death…5200 target intact but ……………………

Idea of the Day

Last night I was at a charity function and spent a happy hour or so chatting to an old mate of mine from my MacBank days. Now it’s fair to say that Mick has been round the block a few times. Haven’t we all!…and as old buffers do, we got talking over a cocktail or many on the market. Now unfortunately we are both old enough to have traded through the 87 crash. Now I am not saying that it is going to happen again but the markets are somewhat artificial at the moment with the huge cash injections going to all the wrong places..much like 87..there is a calm and volatility is cheap..everyone is complacent and talks of the tsunami of money that is in deposit accounts and piling up at corporates as a panacea for all our ills…now I not as bearish as my friend but there are some similarities to 87 undoubtedly..just looking at the dumb prices people are paying for Classic cars ,art etc, houses and so many other ‘assets’. Ok we don’t have any yuppies but Gen Y is doing a good impression of them …anyway I am not an advocate in the sell everything strategy but what I would say is like a good boy scout..be prepared…and maybe it’s a good idea to get acquainted with Put Options…we all insure our cars ,lives ,homes but few insure their super or their share portfolio..just saying worth thinking about!!

Things to make me go mmmm!

Turn the machines back on…Randolf, Mortimer!  NASDARK trade ground to a halt last night for three hours as a computer glitch put an end to trading. No trading in Google, Faceplant or any other of the 3200 shares that are listed on the second biggest exchange.

Zombieland on a tear!! Eurozone business activity grew at its fastest pace for 26 months in August, according to a closely-watched survey.The Markit composite purchasing managers’ index – which includes manufacturing and services – rose to 51.7 points, from 50.5 in July.

Atlas Iron has been punished by investors after its annual results came in below market expectations, leading to analyst downgrades on the stock and questions around the timing for its rail solution. Despite the reaction, the company was positive on its results, which revealed record exports of 7.4 million tonnes, revenue of $695 million, $14m in underlying profit after tax and a $245m statutory loss after tax because of previously announced asset impairments.

Impairments is the new buzz word this reporting season..used to call them write downs or stuff ups but now we have non cash impairments!Going to try it with my finances!

Brambles CEO Tom Gorman has lamented the excessive negativity in commentary about the outlook for the Australian economy, saying there is “plenty of opportunity” here compared with other parts of the world. Speaking after the world’s biggest pallet company posted a $US1.01 billion ($1.12bn) annual net profit, 8 per cent higher than the previous corresponding period and in line with guidance.

Good news for Twiggy as FMG pays a dividend..confidence!! Fortescue Metals Group: indicated that its ramp-up to 155 million tonnes a year was on track when it reported a record net profit of $US1.75 billion for financial year 2013 despite lower average iron ore prices, The company also announced a 10c per share final dividend.

How is it that SYD can make so much money from Car Parking..63m bucks..and not pay a cent in tax!!$8bn in revenue and they even get money back..gotta love those boys at the Millionaire’s factory..they sure know how to structure a company!!!

The Defense Department may have to fire at least 6,272 civilian employees if automatic cuts known as sequestration slice $52 billion from its fiscal 2014 budget, according to a Pentagon planning document.

And don’t forget that September sees the start of the US Government bickering about the budget again!! Always edifying to watch!

And great performance from Steve Smith and the Aussie Cricket team…I know I am English but still looks a lot more of a game now…bring on the Ashes downunder!!

Looks like KEV13 is in trouble in his own seat trailing the coalition challenger..wouldn’t that be a knock to his massive ego! Suspect that he wouldn’t handle it as well as John Howard did.The Youtube Hitler clip could be adapted beautifully to that..there is a good one out already on him being told that NASDARK closed…sorry called it NASDARK as that’s what it was..very dark indeed!!

And this was quick..Hitler finds out about NASDARK close..

http://youtu.be/4q49a2m4Mt8

And finally….

THE ITALIAN WEDDING TEST

I was a very happy man. My wonderful girlfriend and I had been dating for over a year, and so we decided to get married. There was only one little thing bothering me…It was her beautiful younger sister.

My prospective sister-in-law was twenty-two, wore very tight mini skirts, and generally was bra-less. She would regularly bend down when she was near me, and I always got more than a nice view. It had to be deliberate. Because she never did it when she was near anyone else.

One day her ‘little’ sister called and asked me to come over to check the wedding invitations. She was alone when I arrived, and she whispered to me that she had feelings and desires for me that she couldn’t overcome. She told me that she wanted me just once before I got married and committed my life to her sister.

Well, I was in total shock, and couldn’t say a word.

She said, ‘I’m going upstairs to my bedroom, and if you want one last wild fling, just come up and get me.’

I was stunned and frozen in shock as I watched her go up the stairs. I stood there for a moment, then turned and made a beeline straight to the front door. I opened the door, and headed straight towards my car.

Lord… And behold, my entire future family was standing outside, all clapping!

With tears in his eyes, my father-in-law hugged me and said, ‘We are very happy that you have passed our little test. We couldn’t ask for a better man for our daughter. Welcome to the family.

And the moral of this story is:

Always keep your condoms in your car.

Have a great weekend

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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