Dow got smashed down(well relatively) at the death last night and Zombieland weaker as China expounded the beauties of holding he Euro,, so expect our market to continue to consolidate. After the year we have had in some sectors there is no reason now to be too brave and fund managers will be looking to play it safe and lock in their gains..the IPOs and Capital raisings are the focus for the time being as we head into Xmas. Thanksgiving holiday in the US is keeping those boys a little quiet too.
Yesterday we saw the banks push higher yet again…familiar story really..More AGMs than you could poke a stick at..most in Perth…the serviced office business must be pretty busy..
We look to be tired at the moment and struggling to find a new impetus to either push ahead or fall back to regroup…not sure which way it’s going to go …its decision time peeps!
Idea of the Day
The big battle that is being fought is on the currency front. It is the weapon of choice for every central banker…our very own RBA led by Uncle Fester has belatedly joined the party but should be happy to see that all its jawboning is working and we should see it slide below 90 cents very soon…of course when this happens holiday overseas will be cancelled instantly, manufacturing with recover miraculously, students will flood in ,cars will be competitive and the mining sector will stop whingeing about high costs most of which they created as they bid up salaries to get contractors…all fixed..simples…but the share market will look to the winners in a 90 cent Aussie..so who has large US dollar earnings..stocks like QBE, BXB, Big Miners, HGG,FOX,MQG perhaps. And others!
Xmas is just 20 trading days away..lots of money to be raised between now and then! Plus lots of lovely Bank dividends for punters to plough back in…and the bank buy backs will ensure good strong underlying demand..should keep the sector bubbling along.
Things to make me go mmmmm!!!!
Say it ain’t so …apparently Nigella Lawson was off her face most of the time on coke and painkillers…could explain some of her recipes!!!And all those bloody flourless chocolate cakes!
Good to see US bombers flying over the newly created Chinese airspace over the disputed islands…good to stir them up!..watched Top Gun the other day..still good…go Maverick!
The yields on Chinese government debt have soared to their highest levels in nearly nine years amid Beijing’s relentless drive to tighten the monetary spigots in the world’s second-largest economy.
Mark “I hate Carnnies they smell of cabbage ” Carney is looking to get himself some new superpowers to control banks’ balance sheets…the leverage ratio..or how much capital they hold over total assets.
APRA has been warning our local banks about the sins of imprudent lending habits and not to get in the same mess as our Euro cousins.
Purchases of foreclosed homes at auctions jumped last month as banks benefited from surging prices and shunned approvals of sales by homeowners dumping their dwellings at a loss.In October, about 20 percent of repossessed properties sold at U.S. auctions compared with 15 percent in July. Investors have emerged as major landlords in Atlanta, Las Vegas and Phoenix — cities hit hardest by the housing meltdown, where property values plummeted by as much as 50 percent.
There have been more than 5m foreclosures since 2006..the problem then comes that the defaulters cant get another loan so they have to rent at big prices making it attractive for investors…the rental vacancy rate has now fallen to a 12 year low.And as prices rise Home equity lines of credit or Heloc have soared 16 percent this year and will reach another five-year high in 2014.See what free money does to asset prices.
Bitcon has soared to all-time highs as Gold 2.0 follows the tech boom higher..will it hit $1000..you bet!
Ansell: has made its largest ever acquisition, and one of the biggest foreign transactions by a local company this year, by agreeing to buy the US-based disposable glove manufacturer BarrierSafe Solutions for $US615 million ($670m).
In GrainCorp ADM Chairman Patricia Woertz to speak at Australian Senate hearing.Time to put your best American foot forward to win this one…maybe if they were Canadian that would have helped.
And over in the US, in the Thanksgiving period, since 1987 – the Dow has risen 16 of the last 26 years or 61% of the time.60% of the time it will work every time.
And just a quickie..everyone was very down of ALL yesterday but a huge percentage of social media users are playing online gaming..I did hear 50% but that cannot be right..so ALL moving into this space should be a positive for the stock..yesterday they said expected to launch a product for smartphones and tablets within the next 12 months.Chief executive Jamie Odell says Aristocrat’s strategy of expanding its activities to providing content for online, social media and mobile gaming is playing out very well…think they better be quick!!
This morning I was in luck and was able to buy two boxes of “VIC BITTER” cheap at the local bottle o.
I placed the boxes on the front seat and headed back home. I stopped at a service station where a drop-dead gorgeous blonde in a short skirt was filling up her car at the next pump.
She glanced at the two boxes of beer, bent over and leaned in my passenger window, and said in a sexy voice, “I’m a big believer in barter, handsome. Would you be interested in trading sex for beer?” …
I thought for a few seconds and asked, “What kind of beer ‘ya got?”
Catch me on Sky Lunch money today at 12.00…..
Stay Classy Sydney
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