Morning all,

Another push higher from the Dow as the Syrian risk fades.The World equity markets have taken a serious dose of optimism pills as the economic data from around the Globe continues to show positive signs. Even words of caution on the Chinese economy from their leadership could not damper the enthusiasm for the markets. Chinese Premier Li Keqiang said the foundations of a growth rebound aren’t solid while cautioning that stimulus won’t help resolve deep-rooted issues in the world’s second-largest economy.

Zombieland was a little more restrained but still managed to get to a 5 year high. Looks like we are going to be doing the same today. All systems go. There are even some commentators predicting an 6500 level in a couple of years!!Thank God for Tony..looks like he has saved the day already. Course he will take the credit.

Seems everybody has quietly put Tapering off the risk list now and it’s just buy it if it’s not nailed down! This will obviously get contagious here too…expect another positive day and a tilt at 5252 which is the 2013 high and the highest it’s been for two Governments!

Gold was steady, Oil small rally, Iron Ore down a tad and the Aussie dollar heading into my target of 94 cents. SPI up 12..expect us to crack the 5250 with ease today…if this pace keeps up we will be at 5500 by Xmas!!P/E expansion abounds…not E expansion except by cost cutting, just low rates giving few alternatives!

Idea of the Day

The great thing about Bull markets is they get pushed up on a wall of worry…and as it goes higher it is sometimes hard to see the value..I know I am having issues seeing the value…still m aybe its not about value but about exposure..can you afford to miss out ?That is the question….do you feel lucky punk?…well do ya?

Fancy large resource stocks to continue to do well on the remerging China story…talked about AGO buying at 80 they are now 90 (more to go perhaps?) …have been a fan of BHP..still are..maybe have a peek at BCI for a run to 5.00 looking at the charts..

Things that make me go mmmm!

Apple got crunched last night as their latest offering crumbled to nothing. The poor old Cook seems to have misjudged the market mood again and these guys are finding it hard to keep coming up with innovation. No China Mobile deal either. Looks like they have given up competing on price too…seems they are happy to charge $739 for a cheap iPhone! If they don’t innovate then it all comes down to price and Samsung is looking pretty good on that basis! Maybe we have seen ‘Peak Smartphone’.

Last night we saw the World’s biggest bond auction go off without a hitch..$49bn…$265m in fees!!!Nice pay day for J P Morgan and their friends.

Lovely to hear our new Government talk of the infrastructure of the 21st Century is roads! Very space age…some decent high speed rail, internet and ports may be a good idea too…but let’s build roads anyway!!

Looks like the US is going to have to raise its debt ceiling to around $17.8trillion when they go broke in October..thats roughly 105% of GDP!!And amidst the housing ‘boom’ in the Us refinancing has dropped 70% since may and the Tapering talk emerged.

Secretary of State John Kerry is consulting Henry Kissinger, the 90-year-old embodiment of Cold War foreign policy, before heading off to negotiate with his Russian counterpart over Syria’s chemical weapons…God, I hope I can find the bathroom when I am 90 ..let alone consult on a potential Middle Eastern Military adventure…still nowadays all done by a drone..

Department store Myer has reported a full-year profit of $127.2 million, down 8.7 per cent from the previous corresponding period. Total sales were benign, up just 0.8 per cent. Myer will pay a final dividend of 8 cents which will be paid on November 14.

Consumer electronics chain Dick Smith could be back on the market before Christmas after its private equity owners appointed investment banks Goldman Sachs and Macquarie Capital to explore sale options, including an initial public offer valuing the chain between $550 million and $620 million. Anchorage Capital, which bought Dick Smith from Woolworths for $20 million last September, has brought forward plans to exit the business following a rapid turnaround in earnings and amid signs of a recovery in consumer confidence and discretionary retail spending….must say though having visited the Warringah Mall store recently  I wouldn’t touch this with a barge pole!

A MEMPHIS-BASED value investment fund — founded by a low-key US billionaire who has nominated Warren Buffett as a key mentor — has taken a voting stake of nearly 12 per cent in News Corporation. Southeastern Asset Management’s stake in News makes it the second-largest shareholder in the group behind the company’s chairman, Rupert Murdoch. The investment is most likely the personal brainchild of Southeastern founder Otis “Mason” Hawkins, described in US financial circles as a “crusty legend” of the value end of the US funds industry.

Regenerative medicine company Regeneus has closed its $10.5 million initial public offer and will list on the Australian Securities Exchange on September 17. Brokers BBY and Peloton Capital raised the $10.5 million at 25¢ a share, which will see the company float with a $45.9 million market capitalisation under the code “RGS”. Sydney-based Regeneus provides services extracting stem cells from fat tissue for orthopedic surgeons and sports physicians, who then reinject the cells into joints or tendons to promote recovery.

URANIUM prices are at their lowest level in nearly eight years, as investors and utilities give up hopes for a quick revival for nuclear power. The market for the radioactive fuel hasn’t recovered from the 2011 earthquake and tsunami that devastated Japan’s Fukushima Daiichi power plant.

Looking forward to hearing Julia Gillard speak at the Opera House in her tell all revelations.

Pacific Investment Management Co.’s Bill Gross reduced holdings of Treasuries and other U.S.- government-related debt in his flagship fund in August to 35 %, the lowest level since March. The proportion of U.S. government and related debt in the $251 billion Total Return Fund dropped from 39% in July, according to data on Pimco’s website.

And a spare a congratulations for an old mate of mine Tom Denniss who has taken two years to run around the World!!!50kms a day for two years!!!Tomorrow he finishes at the Opera House at 1pm..raising money for Oxfam..great stuff are a legend!


And finally….

“Elections are like police line-ups, only with elections you pick the person before they rob you and screw you. It’s like a game of choose your mugger.”

Have a great Thursday…Back on Newcastle radio at 12.20pm….no note tomorrow as I am at a client function.



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