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Morning all,

More bullish news than you can poke a stick at as BHP announces this morning and its shipping Iron Ore like they stole it..maybe they did..anyway I was talking BHP last week and some punters listed and bought around 3510 ..looks like 37 is easy achieveable…the market is now in Bull mode..Santa is rubbing down his Reindeer for a good festive season…I remain convinced we will see 5600 on the index by year end and to achieve that we need the big resource stocks to fire..and they will as the Iron Ore analysts turn all wishy washy on their forecasts…sub 100 buck Iron Ore…really? Most risks seem to have been taken off the table now…just blue sky ahead…

Anyway the banks have led us up in a stunning fashion..remember my bucket of banks and bucket of resources back in September 2011…All four banks for $100 ..now around $176..and that’s not counting dividends!!!Resource bucket of BHP,RIO and FMG not so flash…bout $105..so this is the potential I believe…If I was a hedge fund I would sell the bank basket and buy the resource basket….lucky I’m not perhaps but it does show the lag of our big miners…time to catch up soon?

Anyway a quiet day with most of the focus on BHP and its disciples following the numbers this morning..The US seems to be waiting for the jobs numbers which have been delayed by the shutdown..fair is foul and foul is fair I suspect with these numbers!!

Idea of the Day

Now the banks have all been priced to perfection and their numbers need to be good to support these prices…now I am not saying sell your banks at all..but there is room for some disappointment and the easy money has been made…BHP is still my pick in the big caps..nice to see AMP starting to move too..I suggested this one last Thursday as a laggard…$5.00 is very doable..Unless the banks start to ramp up their dividends the 4.5% yield is starting to look a little skinny for my likeing..every man and his dog is long the banks ..what can go wrong…nothing right..insulated monopoly businesses…but pretty soon they start to believe they are geniuses…always a worry..hubris..

In the smaller end of the market..I really like GEM..the current SPP is a good opportunity to get set before the next leg up..indigestion will not last…this is a childcare provider that is disciplined and buys cheap Mum and Dad centres and adds the corporate magic of size and scale…well managed and growing!!

Things to make me go mmmmmm!

The U.S. debt now equals $17.075 trillion, according to figures the Treasury Department posted online on Friday. If Obama’s budget projections prove accurate, the National Debt will top $20 trillion in 2016, the final year of his second term. That would mean the National Debt increased by 87%, or $9.34 trillion, during his two terms.


Still in the US Obamacare has had a few teething problems with its web site ..they have finally got the experts in to sort it out and they have set up a help line..not sure if this is for real!!!


In the UK they have ordered a new Nuclear Power station from the French..first one for a generation! And from the French!!

And in a medical breakthrough it seems that it is possible to regrow hair using new born babies foreskins! Explains Shane Warne for sure!!

BHP Billiton’s third-quarter output of iron ore surged 23 per cent year-on-year to 48.8 million tonnes, while other key products reported strong growth too. Petroleum product output rose 2 per cent year on year to 62.7 million barrels of oil equivalent, the miner said in a release this morning.Output of coking coal rose by 14 per cent year-on-year to 10.2 million tonnes as steaming coal output rose a more modest 3 per cent to 19.6 million tonnes.

ANZ chief executive Mike (007)Smith is set to face a fresh grilling at the bank’s result announcement next week about his Asian expansion, with another major broker questioning returns being delivered. After Macquarie downgraded ANZ on Friday due to its declining margins in Asia.

Hedge-fund manager John Paulson’s PFR Gold Fund fell 16 % in September after bullion and related stocks declined, according to a report to investors obtained by Bloomberg News. Last month’s loss brings the 2013 decline in the $350 million fund, which invests in gold stocks and derivatives, to 62 %, according to the report.

Good to see the US has been spying on its friends for years..latest to get upset are the French who now want their Statue back…can’t blame them really..Statue of Liberty has been renamed the Statue of Secrecy…

For the Gold bugs….this appears to be the strategy that China is pursuing for the day when the US Dollar is no longer the Reserve Currency of the World……China has invested heavily in domestic mine production and is now the largest producer at an estimated 440 tonnes annually, and she is also looking to buy up gold mines elsewhere. Little or none of the domestically mined gold is seen in the market, so it is a reasonable assumption the Government is quietly accumulating all her own production without it becoming publicly available. Recorded demand for gold from China’s private sector has escalated to the point where their demand now accounts for significantly more than the rest of the world’s mine production.

Now as the IPO hubris warms up for the Xmas season ..be careful of stuffing your stocking with Dick Smith…very sceptical on this one…maybe I am cynical but when you go into their shops..no one there!!!check it out for yourselves before you get excited about this one..

And finally……another Irish joke..sorry ..Thanks Hans though….

53,000 Irishmen meet in Dublin for an “Irishmen Are Not Stupid“ convention.

The Prime Minister addresses the crowd.. ‘We are all here today to prove to the world that Irishmen are not stupid. Can I have a volunteer please?’
Paddy Maginty gingerly works his way through the crowd and steps up to the stage.

The Prime Minister asks him ‘What is 15 plus 15?’
After 15 or 20 seconds Paddy says, ‘ Forty!’

Obviously everyone is a little disappointed. Then a dozen or so Irishmen start chanting ‘Give him another chance! Give him another chance!’
The Prime Minister says, ‘Well since we have a capacity crowd, world-wide press and global broadcast media here, I think we can give him another chance.’

So he asks, ‘What is 5 plus 5?’
After nearly 30 seconds Paddy eventually says, ‘ Twelve?’

The Prime Minister looks down and just lets out a dejected sigh.
Everyone is disheartened and Paddy starts crying.
But then the 100 or so Irishmen begin to yell and wave their hands shouting, ‘Give him another chance! Give him another chance!’

The Prime Minister, unsure whether he is now doing more harm than good eventually says, ‘OK then, what is 2 plus 2?’
Silence hangs over the stadium.
Paddy closes his eyes, and after a whole minute eventually says, ‘Four?’

Pandemonium breaks out throughout the stadium as the Irish crowd stand to a man, wave their arms, stomp their feet and scream,
‘Give him another chance! Give him another chance!’

Have a great Tuesday



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