Morning all,

Onwards and upwards I suspect. News this morning that WBC revealed up yet another record profit will be enough to keep the banking sector on the boil. Shareholders will get a 10 special dividend too. So take that RBA! WBC have long been my favourite Bank..think Gail is a quality act. But didn’t MacBank do well with their free Sydney Airports giveaway..up 5% on Friday.

Expect another strongish day as we push up towards the 5450 again. At these lofty heights though we will probably flip flop around for a few more weeks before we hit the 5600 level just before Xmas. Lots of IPOs coming down the track to sing siren like for your money. Expect lots of colour brochures with sexy pictures and graphics.Hear that call..thats NINE..still the one!$700m to raise…lots more cash being sucked out of the system pre Xmas.

Idea of the Day

You know what is really scary..the banks have collectively made $27bn of record profits in an economy that according to the Coalition was stuffed..according to the figures was going nowhere but down..according to the housing sector was struggling..according to the retailers was in massive trouble…and YET they made $27bn!!!!So just think how much they will make now that we have a new Government, record low rates, house prices going silly and consumers back in the game after the election.

So I know they are expensive but there is more upside I suspect especially as we get lower for longer interest rates..talking to my mate who sells cars,he said that the tap was turned back on after the election and now it’s going gangbusters mantra is Buy the Banks Die with the banks…pass them on to your kids whilst you enjoy the fully  franked income until you shuffle off this mortal coil…

Things to make me go mmmm!

Have all the Bears gone into hibernation ..everyone seems so bullish!!!




Bank of Captain America has said…It’s getting frothy man!    As of September 2013 NYSE margin debt stood at a new record high of $401.2b and exceeded the prior high from April of $384.4b.

captain america


Bega Cheese: is in no hurry to increase its $435 million cash and scrip offer for Warrnambool Cheese & Butter Factory, preferring to wait and see if buyers boost its own stock, and the implied value of its bid, in coming days.

Nine Entertainment Co: prospectus will confirm CEO David ¬Gyngell as the highest paid media ¬executive in the country, with a remuneration package worth around $10 million a year. It is understood Mr Gyngell will hold just under 1 per cent of Nine after it is floated, but those shares cannot be traded for three years after the listing, planned for December 6.

Affinity Education: Small cap darling G8 Education’s stellar run has another childcare roll-up, Affinity Education, preparing for a $77 million equity raising this week and December 11 ASX debut. Affinity have shown to fund managers over the past week and about a fortnight ago took a small group of investors up to Brisbane to show them around some of Affinity’s 68 childcare centres. Affinity has plans to buy 57 centres using funds from the IPO and manage another 11.

Indian Stock Market hits a record high!

Berkshire Hathaway said net profit rose 29% to $5.05bn (£3.2bn) in the three months to September from the same period last year.This was mainly down to its investments at the peak of the financial crisis in General Electric and Goldman Sachs, boosting it by $1.2bn.Berkshire’s revenue grew 13% to $46.5bn.

Talking to a good mate of mine yesterday ,he has been up in Port Headland looking to buy a property that yields nearly 15%!!!Borrow money at 5% and get 15%..this is a no brainer…I knew things were pretty silly in Headland but this is ridiculous..even if the property never rises in value what a great yield!

Good to see the US is putting their drones to good use and taking out a Taliban leader in Pakistan…will make life interesting as they were in Peace talks..

The Third Plenary session of the 18Th Central Committee of the Communist Party is on baby!!Well it will be from 9th to the 12th  Novemebr..big things in the air..bold reform Sir Humphrey..very courageous Minister.

Dumbest use of Public Money in the US has to go to the Scientists who  created a study to see if a sick shrimp displayed the same endurance on a treadmill that a healthy shrimp did. This project boasted the impressive price tag of 3 million dollars…good stuff..

Lots of things happening this week on the economic front.. Friday’s US payrolls report. US Q3 GDP is also due (Thursday) and tomorrow night the non-manufacturing ISM plus of course we have the RBA tomorrow for the meeting that stops a nation!!No change to come!

And finally…..

An old man and a woman were married for many years.

Whenever there was a confrontation, yelling could be heard deep into the night.

The old man would shout, “When I die, I will dig my way up and out of the grave and come back and haunt you for the rest of your life!

Neighbours feared him. The old man liked the fact that he was feared.

To everyone’s relief, he died of a heart attack when he was 98.

His wife had a closed casket at the funeral

After the burial, her neighbours, concerned for her safety, asked.

“Aren’t you afraid that he may indeed be able to dig his way out of the grave and haunt you for the rest of your life?”

The wife said, “Let him dig. I had him buried upside down.

And I know he won’t ask for directions.”

Have a Great day 




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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