Morning all,

 Obama wins the game of Chicken..”I will give you a war you wont believe..”JohnRambo2008

The biggest game of Chicken has been pushed down the road and with it fears of tapering. As the US recovers from its polie induced funk, we will see the money printing continue ..stronger for longer…as a result Gold rallied..I talked some Goldies in the last few days but suspect it has fallen on deaf ears…however it is still worth looking at them..SLR and RRL stand out but they will bounce hard today…accumulate on weakness..you can only buy things when there are sellers…anyway the S&P 500 hit a record high..way to go guys..we will push through 5300..thought we would yesterday but BHP,RIO and FMG failed to launch..suspect that may change a little today..SPI up 30 so 5300 gone..will be in the rear view mirror by the time Santa has departed these shores for his January rest….

 

Now the problem is for the US to ensure the Emperor is now seen to have a full suit of fine clothes..any chink in this façade will hurt it..US dollar is under a little pressure hence Golds rise and the Aussie is heading for parity again..must be time for the RBA to come out and try and talk it down again! Uncle Glenn on today in fact..also maybe we could get some information from our new government who have been amazingly quiet since they got in..they made so much noise before the election they seem to haven’t worked out what to do now they have won…familiar problem for ambition..when you get the top gig, where to now?

 

Anyway the market will push higher..nothing to stand in its way now…few bad US numbers won’t hinder in fact they will help Yellen print big print often..expect the ASX 200 to trundle through 5600 by year end.Maybe Aussie back to parity before then…book those Overseas trip s quick then as it wont last!!

 

Idea of the Day

 

The boffins that have their Iron Ore prices for the year at 90 -100 bucks are starting to look a little silly..these Iron Ore companies are making out like bandits at the moment…the price shock when it touched 87 was enough for them to examine their plans, cut their costs and get rid of the waste..now they are leaner, meaner and very bloody profitable..look at FMG,MGX and AGO seem to be doing well although have heard a few contrary opinions on this one..but I like it!…so would continue to be a buyer of these Iron Ore stocks..if you want big go BHP/RIO..if you want more leverage buy FMG…if you want even more risk buy the tiddlers like AGO,MGX and ARI.

 

Looking for more ideas? CWN,LNC,BDR…LNC got punished badly when they announced they were taki9ng their bat and ball and moving to Singapore..didnt work out so well for big Nath! But since the big fall they have been clawing their way back and today they have announced production increase to over 6900 barrels of oil equivalent a day..heading in the right direction  will see 180/200 soon..one direction….CWN cos of the Macua gambling business and BDR cos it’s a great emerging gold producer…but remember these things are for buying and selling..they are not numbers on doors…AMP might be worth a look too on the catch up front to the rest of financials..look what CGF did yesterday up 4/5%….and for a real success story take a peek at XRO!!! Yeah Bro…

 

Anyway you get the idea…me I am a bull…nothings gonna stop us now!

 

 

Things to make me go mmmm!

 

World Cup draw is on Monday.

 

Anyone seen Tony Abbott or Joe Hockey…where everywhere in opposition but now? They seek him here ..they seek them there…

 

This day in 1973 OPEC put in the Oil embargo and the world changed forever! Also tomorrow is the anniversary of the Crash of 87!ah the good ol days!!remember it well..like only yesterday..

 

Cockatoo coal just bid for Blackwoods..remember when Big Nath was going to fund them…start of his decline..at least publically..probably hiding with Tony and Joe now..

 

The big cheese has received another bid at $7.50…why do corporates place more value on assets than the market? More M&A to come..More IPOs to come..enough to warm the cockles of an investment bankers heart. MQG will do ok..doing ok on mortgages too.

 

In the US flips on homes priced between $1 million and $2 million increased 42 percent year over year, while flips on homes priced between $2 million and $5 million increased 350 percent year over year.”

 

Cash is king.. Fortescue Metals Group’s: cash pile is mounting after another quarter in which the company managed to reduce costs and increase production amid an environment of sustained strength in the iron ore price. The company reported on Thursday that it had amassed $US2.8 billion in cash at the end of September, up from $US2.2 billion at the end of June.

 

Our survey said…. Business conditions in the mining sector have hit a 14-1/2-year low, thanks to slowing Chinese growth and the winding down of the mining investment boom. Businesses in almost all industries were more confident in the September quarter in the wake of the federal election, but that confidence has yet to filter through to actual business conditions which remain subdued..thanks NAB.

 

Good to see CBA continuing to innovate with stocker now for your iPhone to activate NFC(Near Frequency Communication) so you can pay for more stuff on your iPhone..Apple of course does not use NFC technology preferring to use another system…so half the smartphones around cant use pay by tapping your phone..now they can..just buy the stiocker..simple..and that’s why CBA has the best technology..these guys are good!

 

And finally…..couple of quickies at the expense of my Irish friends…

 

Mick says to Paddy, “Close your curtains the next time you’re making love to your wife, the whole street was watching yesterday and laughing at you.”

Paddy says, “Well then the joke’s on them then because I wasn’t even at home yesterday.”

 

Mick walks into Paddy’s barn and catches him dancing naked in front of a tractor. Mick says, “Paddy, what the hell ya doing?” Paddy says, “Well me and Mary haven’t been getting on in the bedroom lately and the therapist recommended I do something sexy to a tractor.”

 

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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