Morning all,

Let’s get this straight before we start …the US Politicians have not solved the debt crisis, all they have done is extend their credit card limit until Feb 7th when the circus starts again! They still have $16.7 trillion in debt and counting…I remember a saying about owing the bank debts……anyway the market now has no roadblocks no impediments to pushing ever higher…the horizon is clear..I have said many times that we will see 5600 by Xmas  and we will…it is now game on I believe and the next leg up will be cyclicals….banks will still do well..they always do but as my old boss in London always said..”if you are not long you are wrong!” SPI up 20…but will be more…5300 broken today I suspect…

Maybe I have taken the bullish pills this morning but apart from a bit of profit taking here and there it’s blue sky…Japan is growing at 4%..Zombieland is growing at bugger all but it is growing..The US is back on track and Tapering talks will subside after the ceiling debacle and with Yellen in da house the printing presses will run and run..Plus here at home things are turning up..housing price rises make everyone feel good..well if you own one that is..and low rates and Tony ascended to heaven what could go wrong.

If you need to understand the role of Central banks check out John Clarke as he explains Quantative easing…absolute gold…here’s the link..very funny…

Yesterday I was at the Gold Symposium and on the same panel as Rick Rule…google him hes a big ,not..but anyway he had some intersting things to say..firstly he rated RRL as the best run Gold company in the World..In the World..not just Australia but the World!!!I listen when a gazillionaire tells me that…so just saying…also he was long term bullish was a Gold Symposium after all..that why he is there…was happy to buy when prices are low as it just makes him richer when they rise…expects pressure in the short term but the other guy that was there was a Swiss Gold Bullion Dealer and he was saying they had ben inundated with physical buying from the East…seems the transfer of hard assets..only Gold is a faith based currency …is happening at a rapid pace as the West sells paper Gold like ETFs and the east buys physical Gold…anyway the upshot of all this is its time to accumulate Gold  and good gold companies…our analyst has a favourite SLR and RRL…nibble at these people…. nibble…

The other star performer was Sean Russo from Noahs Rule which is a company which helps miners fund and take risk away from their operations using Gold hedging(remember that)…inspiring talk…very passionate about the benefits of hedging production…I won’t dwell on this today but would have been nice for some of our companies to have hedged their production instead of being greedy, taking a punt on higher prices and stuffing it up so badly they are now on their knees…lesson in bet!!They always say investors don’t want us to hedge as they want exposure to the gold price…yeah right..if I ran a business where you could guarnmatee prices ast a level in the future locked in I would be doing it …if it costs 1000 bucks to get it out of the ground and you can sell forward at 1700/1800/1900 bucks as you could have how good would that be..then you could get on and run the company more efficiently and get your production costs down knowing that you have the cash flow to do it…would nt that be a great idea…but no you choose to punt on it going to 2500..thats what the commentators told you..der! Rant over!!

Last thing from the conference, I met the CEO of a bullion company ABC if you are looking to buy Physical Gold and it seems an increasing number of people are, these guys are a great place to start..ABC Bullion..very professional and they have a neat James Bond style vault in the city now where you can keep your shiny stuff if it is making your mattress lumpy. They sell 1 tonne of Gold a week!!

Idea of the Day

Might be time to look at AMP..will benefit from the rising equity markets ..has been an underperformer in financial sector..look at the growth of HGG to show what can happen..

If you want to buy more risk in resources but stay in blue chip..BHP is a good place to start..I like Iron Ore  AGO is a stand out here for a move the carpenters said..”Its only just begun!”

But you know what just make sure your money is working hard for you between now and Xmas…Santa is revving up the sleigh and will deliver!!

Things to make me go mmmmm!

CSL: has announced a $950m buyback in a move that could herald an avalanche of capital returns to shareholders across the equities market.

APN News & Media, Fairfax Media: are in preliminary talks about a ¬potential printing and distribution partnership, as both publishers seek further cost cuts in response to sliding print sales. It is understood debt-laden APN is focused on the potential merger or shared use of printing assets in NZ.

Newcrest Mining has rejected criticism of its remuneration practices, saying the board is yet to decide if executives can keep shares that vest in November under the company’s long-term incentive

 A study of more than 4000 Australian adults found 27 per cent were obese according to their body mass index, but when they measured their waists ,it seemed that 49 % were obese! Doing my bit!

International Business Machines Corp. (IBM), the largest technology consulting company, reported its sixth straight quarter of falling sales amid sluggish demand for computer hardware and the decline of one-time growth markets.

“The House has fought with everything it has to convince the president of the United States to engage in bipartisan negotiations aimed at addressing our country’s debt and providing fairness for the American people under ObamaCare.  That fight will continue…John Boehner

Ahead today … National Australia Bank’s business survey for the September quarter, Woodside Petroleum third quarter report, Santos third quarter production, Fortescue Metals Group first quarter production, Ansell annual general meeting, Newcrest September quarterly results(this will be fun)

And finally…..

The Brothel

The madam opened the brothel door and saw a rather dignified, well-dressed, good-looking man in his late forties or early fifties.

‘May I help you sir?’ she asked.

‘I want to see Valerie,’ the man replied.

‘Sir, Valerie is one of our most expensive ladies. Perhaps you would prefer someone else’, said the madam.

‘No, I must see Valerie,’ he replied.

Just then, Valerie appeared and announced to the man she charged $5,000 a visit. Without hesitation, the man pulled out five thousand dollars and gave it to Valerie, and they went upstairs. After an hour, the man calmly left.

The next night, the man appeared again, once more demanding to see Valerie. Valerie explained that no one had ever come back two nights in a row as she was too expensive. But there were no discounts. The price was still $5,000.

Again, the man pulled out the money, gave it to Valerie, and they went upstairs. After an hour, he left.

The following night the man was there yet again. Everyone was astounded that he had come for a third consecutive night, but he paid Valerie and they went upstairs.

After their session, Valerie questioned the man, ‘No one has ever been with me three nights in a row. Where are you from?’ she asked.

The man replied, ‘ Bundaberg ‘.

‘Really?’, she said. ‘I have family in Bundaberg .’

‘I know.’ the man said. ‘Your sister died, and I am her attorney. She asked me to give you your $15,000 inheritance.’

The moral of the story is that three things in life are certain.

1. Death

2. Taxes

3. Being screwed by a lawyer

Have a great day






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