Morning all,

Good numbers on the economic front gave the bears a reason to think that tapering will happen sooner rather than later…it’s a bit like Hotel California to my way of thinking..’you can check out anytime you like, but you can never leave”! It is going to be so hard to get out of this one. Dow fell last night as did Gold on Taper Tantrum!

To our market, which frankly is stretched and like an elastic band when it snaps back you do not want it to hit you in the face..you look pretty silly..we have all done it..now last night I was giving a talk to some economic students at a prestigious private school in Sydney..yeah they let anyone in….my best piece of advice was do not believe you are a genius..in a bull run it is really hard to lose money..really hard.It makes us all look brilliant even commentators like me..memo to self and others ..we are not geniuses..me especially ask my wife!…the fear of missing out, the greed ,well it makes clever intelligent people do dumb things with their money..logic goes out of the window..now I am bullish as you know,I am not changing my forecast for 5600 by Xmas but from 4650 in Late June to 5450 now, is a BIG move..BANKs especially!!! DO NOT EXPECT IT TO GO FOREVER.IT NEVER DOES!We need to consolidate and the rubbish that has been bid up just because will come back quickly..if you are holding this rubbish be careful..

Still why worry Janet has your back!!

Chinese numbers today..gonna be another piece in the puzzle.. The October manufacturing PMI will be released at 12.00 noon local and then at 12.45pm the HSBC/ Markit Manufacturing PMI.Forecasts are for 51.2 and for 50.7 respectively

Idea of the day

At the moment in the tech space you could float Enron or Worldcom again (or Twitter) it’s so hot..really…there is a company called Spencer(SPA) which was a shell basically and put in a new company called Bulletproof Networks….the stock has gone from 5c to 33 cents..Fear of Missing Out is rife..FOMO rules!!May be time for cool heads perhaps..a NZ float Geo Op listed yesterday ..raised money at 1.00 now trading at 2.37!!Not sure where it will end but History does repeat itself..

“Those who forget the past are doomed to repeat it”  Sara Shephard “The Wanted

Things to make me go mmmmm!

Record high unemployment in Zombieland..things going just spiffing!

President Obama is now at an all-time low in popularity…and he seemed so full of promise…soon we will be talking lame ducks..legacy and the next man in the Whitehouse..Clive Palmer for Pres!!

And in breaking news this morning Kyle and Jackie O are leaving 2 Day FM and joining Hope FM!!Culture Clash

Japanese electronic giant Sony has slashed its full-year profit forecast by 40% as it continues to struggle.It now expects to make a net profit of 30bn yen ($305; £190m) in the financial year to 31 March 2014, down from its earlier projection of 50 bn yen.

Good to see the US is now hitting out at its friends..having spied on the Germans it has now launched a surprise attack on their economy by calling it anaemic and suggested that their export led growth economy was not helping the rest of Europe..really?…Germans know a thing of two about surprise attacks…ask the Poles..anyway they also had a go at the Chinese..good attempt to deflect from the spying scandal!!NOT!!

The comeback kids at the Millionaire factory have announced this morning and looks ok …they are back!!half a bill for the half…!!

Macquarie Group booked a 39 per cent rise in first-half net profit, after its market-facing and annuity style businesses both performed well.Macquarie Group posted profits of $501 million, beating an average projection of $475 million from two analysts, and up from $361 million in the same period last year

In the art world someone paid nearly $4m for a Whitely last night…1987 anyone! Classic Cars ..art…real estate..equities…all going silly…the trick with any bubbles is to know when to get out..like the Joe Walsh song..I go to parties sometimes until Four..it’s hard to leave when you can’t find the door!

Never knew Cheese and Milk could be so exciting…Bega Cheese, Warrnambool Cheese & Butter:  THE world’s largest dairy exporter, New Zealand’s Fonterra, has joined the extraordinary bidding war for Australia’s dairy assets, as international groups compete with local players spurred on by the promise of soaring Asian demand for dairy products. In a case of the hunter becoming the hunted, Bega Cheese last night fell victim to an after-market raid, with Fonterra seeking up to 10 per cent of the shares in the local dairy group…this one will run and run.

The trial of Rebecca Brookes and Andy Coulson in the UK hacking scandal took a turn yesterday as it was revealed that the two of them had been having an affair!!!Could write this stuff could you…maybe a NOTW journo could!!

In the papers today.. More than $6 billion of private equity capital is eyeing opportunities in Australia’s junior mining and metals sector and the experts predict that figure will only rise. Australia’s listed and private junior and exploration have struggled to attract funding for projects amid uncertain and declining commodity prices and tighter debt requirements from major lenders. Speaking at the Mines and Money Conference in Melbourne on Thursday, EMR Capital investment director Richard Crookes said specialised metals and mining private equity groups are looking to fill that funding gap for the right project.

NAB chief executive Cameron Clyne has reassured investors the bank has no plans to change its capital management program after speculation the banking regulator had warned against paying bumper dividends due to new rules for banks considered too big to fail.

Woolworths’: strategy of using big data to deliver targeted grocery and petrol discounts has helped Australia’s largest retailer achieve its strongest food and liquor sales growth for four years. Woolworths grew its leading share of the $80 billion grocery market in the September quarter and served an extra 1 million customers.

Redcape: Brokers JPMorgan and Goldman Sachs have launched pub group Hotel Property Investments’ initial public offer, embarking on meetings with fund managers ahead of an expected $500 million deal later this month.

Expect more floats than the Mardi Gras as every man and his dog gears up to tap your wallet in the run up to Xmas…be circumspect..still thinking of the Mardo Gras perhaps!

And finally…..

Sixty is the worst age to be,” said the 60-year-old man. “You always feel like you have to pee, and most of the time you stand there and nothing comes out.”

“Ah, that’s nothin,” said the 70-year-old. “When you’re seventy, you don’t have bowel movement any more. You take laxatives, eat bran, sit on the toilet all day and nothin’ comes out!”

“Actually,” said the 80-year -old, “Eighty is the worst age of all.”

“Do you have trouble peeing, too?” asked the 60-year old.

“No, I pee every morning at 6:00. I pee like a racehorse on a flat rock — no problem at all.”

“So, do you have a problem with your bowel movement?”

“No, I have one every morning at 6:30.”

Exasperated, the 60-year-old said, “You pee every morning at 6:00 and crap every morning at 6:30. So what’s so bad about being 80?”

“I don’t wake up until 7:00.”

 

Have a great weekend..and I will leave you with this thought..thanks Andrew

As I hurtled through space, one thought kept crossing my mind – every part of this rocket was supplied by the lowest bidder.

~ John Glenn

Clarence

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