Morning all,

Another record high from Wall Street as we await ‘Granny’ Yellen being anointed and the forthcoming Taper tantrum to come. Zombieland wasn’t quite so convinced all will be ok so was happy to sit on the sidelines. London’s benchmark FTSE 100 index sank 0.80% to 6,570.17 points. Frankfurt’s DAX 30 shed 0.19% to 8,596.95 points. In Paris, CAC 40 in Paris slipped 0.16% to 4,145.51 points. Gold fell, Iron ore fell, oil down and dollar at 93.5c.

Janet Yellen, vice chair of the Board of Governors of the U.S. F

 merkel

Now my question is has any one seen these two women in the same room together? Or maybe the Fed is being infiltrated?

Below is a screen shot of the world five years ago according to Bloomberg!!makes pretty depressing reading …but I guess it does show you have far the world has come in those five years!!!If we looked at today maybe we would see some “irrational exuberance”! Things do change ! Maybe this goes to show the value of being a straw hats in winter kind of person!!

five years ago

Expect another quiet day today with nothing shaking but the trees(Graham Parker song!). Gold shares will be weaker as will other resource stocks on lower commodities and higher dollar…we will be waiting though for news from the Fed on Thursday morning at 4.15am!!

Yesterday the RBA suggested that Banks should be careful about who they lend money to as they are worried about House Prices getting carried away again..and so they should be ..seems we are having a massive binge on housing again as records are broken ,reserves are smashed and the harbour City’s most expensive property goes up for sale with rumours of $100m price tag..apparently it rents for 6500 bucks a week..that’s $340,000 a year so with a price of $100m ..a yield of 0.34%!! well that makes sense doesn’t it!!!Telling the banks to be careful is a bit like telling Mark weber to slow down on the bends!!Just not going to happen..

Idea of the Day

Now every knows I have been a bank fan…NAB in particular as it has exposure to the improving UK economy..at some stage they will exit this business..maybe the sale by the UK government of their 6% of Lloyds is the trigger point..they still have 33% but it’s a start and raised around GBP 3.3bn!!!NAB has rallied 12% in the last month while the other are up a tad…expect this trend to continue and NAB remains my top pick in the sector followed by WBC on NSW housing..

Things to make me go mmmmm!

Microsoft announced a massive buy back of their own stock last night.

Best headline I saw from one Investment Bank on Uncle Ben and the Taper was …”Tinker,Taper,Told ya,Buy!!” Wish I had come up with it!!

US is going to run out of money soon and could default in its debt…Talk is that by Mid-November the US will be running on fumes unless Congress approves a bigger credit card limit! Visa perhaps?

Brazilian President has called off a trip to the US after accusing the US of spying!!!

Strangely in the US ,property is exempt from Anti Money Laundering provisions…this goes some way to explain the huge cash only proportion of real estate that is being bought in the US,bout 60% is paid for in Bejamins!.Great way to park money in a hot housing market! But in New York, the US attorney Preet Bharara has confiscated a building owned by Iran. Once the former hangout of Ivan Boesky(remember him) known as the Piaget Building…biggest forfeit ever I believe!

New Hope should now be called No Hope after yesterday’s numbers.. it also warned of continued weak market conditions and lower output next year. The company yesterday revealed a 56 per cent fall in net profit for the year to July to $74.1 million.

TPG Telecom soared yesterday on  plans to build its own wholesale broadband network in built-up city areas, in a move that could undermine the new government’s plans for its $20.4 billion slimmed-down NBN. The company, run by reclusive Malaysian businessman David Teoh, said it would give more than 500,000 apartments NBN-like speeds through fibre optic cabling to their basements

BHP Billiton: Pilbara iron ore growth to 270Mtpa would deliver strong returns to shareholders.

Greek PM has announced the country will be fixed in six years….back to pre GFC levels…by which time he will be long gone and the country will still be beholden to Brussels and ze Germans….meanwhile in the real world…Doctors began a three-day strike on Tuesday in protest at government plans for hospital mergers. Teachers went on strike on Monday with thousands attending rallies outside parliament in the capital, Athens, as well as the second city, Thessaloniki.

A research report has Home vacancy in Japan, estimated at about 18 % of housing nationwide, and it may reach 24 % by 2028.All the while the Japanese Government is promoting new home building as a way to stimulate the economy..ageing population and no immigration…A fixed-rate, 35-year loan for a new home in Japan is 1.9 % and with planned sales tax increase next year on new homes ,the rush is on to buy,buy bye!

And finally….it’s a long one I am afraid but well worth it…Happy Birthday Ian!

> The Smiths were unable to conceive children and decided to use a
> surrogate father to start their family. On the day the proxy father
> was to arrive, Mr. Smith kissed his wife goodbye and said, ‘Well, I’m
> off now. The man should be here soon.’
>
> Half an hour later, just by chance, a door-to-door baby photographer
> happened to ring the doorbell, hoping to make a sale. ‘Good morning,
> Ma’am’, he said, ‘I’ve come to…’
>
> ‘Oh, no need to explain,’ Mrs. Smith cut in, embarrassed, ‘I’ve been
> expecting you.’
>
> ‘Have you really?’ said the photographer. ‘Well, that’s good. Did you
> know babies are my specialty?’
> ‘Well that’s what my husband and I had hoped. Please come in and have a seat !.
>
> After a moment she asked, blushing, ‘Well, where do we start?’  ‘Leave
> everything to me. I usually try two in the bathtub, one on the couch,
> and perhaps a couple on the bed. And sometimes the living room floor
> is fun. You can really spread out there.’
>
> ‘Bathtub, living room floor? No wonder it didn’t work out for Harry and me!’
>
> ‘Well, Ma’am, none of us can guarantee a good one every time. But if
> we try several different positions and I shoot from six or seven
> angles, I’m sure you’ll be pleased with the results.’ ‘My, that’s a
> lot!’, gasped Mrs. Smith.
>
> ‘Ma’am, in my line of work a man has to take his time. I’d love to be
> In and out in five minutes, but I’m sure you’d be disappointed with
> that.’ ‘Don’t I know it,’ said Mrs. Smith quietly.
>
> The photographer opened his briefcase and pulled out a portfolio of
> his baby pictures. ‘This was done on the top of a bus,’ he said. ‘Oh,
> my God!’ Mrs. Smith exclaimed, grasping at her throat.
>
> ‘And these twins turned out exceptionally well – when you consider
> their mother was so difficult to work with..’ ‘She was difficult?’
> asked Mrs. Smith.
>
> ‘Yes, I’m afraid so. I finally had to take her to the park to get the
> job done right. People were crowding around four and five deep to get
> a good look’ ‘Four and five deep?’ said Mrs. Smith, her eyes wide with
> amazement.
>
> ‘Yes’, the photographer replied. ‘And for more than three hours, too.
> The mother was constantly squealing and yelling – I could hardly
> concentrate, and when darkness approached I had to rush my shots.
> Finally, when the squirrels began nibbling on my equipment, I just had
> to pack it all in.’
>
> Mrs. Smith leaned forward. ‘Do you mean they actually chewed on your,
> uh…equipment?’ ‘It’s true, Ma’am, yes.. Well, if you’re ready, I’ll
> set-up my tripod and we can get to work right away.’
>
> ‘Tripod?’
>
> ‘Oh yes, Ma’am. I need to use a tripod to rest my Canon on. It’s much
> too big to be held in the hand very long.’
>
> Mrs. Smith fainted!

Catch me today on Lunch Money on Sky TV when I get to talk all things market!!!

Have a great Wednesday

Clarence

XXX

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