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Morning all,

Well ,Fed member Lockhart, certainly put the cat amongst the pigeons last night with comments on the Taper and the strength of the US economy…shovels and snow ploughs have been very strong..…unfortunately it only takes one small boy to shout the “ Emperor has no clothes on” to upset the whole thing…and upset it was…with valuations already stretched to seven year highs ,the Dow took a tumble last night 170m points ..SPI down 52…. falling the most since August. What’s bad for stocks was good for Gold and other metals though and takeovers were back!!!Huge night for corporate action with a $62bn bid lobbed for Time Warner Cable! A Bid in the Gold sector too as Goldcorp has whacked $2.6bn on the table for Osisko and Google is buying something I have never heard of for an obscene amount of cash..$3.2bn for a company that makes digital thermostats…am I missing something here….anyway just shows how much cash is washing around the system at the moment looking for a home and returns…

nest

Nest Labs…$3.2bn!!

To our market..a lacklustre day and frankly a dismal  start to the year..even the Dow is down for the year!!Yesterday we saw a move from banks into resources ..last week we saw the opposite…Arthur or Martha..volume was pretty ordinary and still investors in a holiday mode..minds on the beach not on the markets…expect the ASX 200 to have a peek at 5250 today as we start to focus on US earnings and then our own that start up in February…there are signs of life in resources at the moment with the Indonesian move to limit exports of Nickel helping that bombed out sector and Gold seeing some good times for a change..plus the vultures are circling the good assets that have been walloped too much as the babies got thrown out with the bath water….time to shine Gold stocks…

Our market looks like it will test 5200 and maybe a tad lower in the coming week or so..Santa has a hangover it seems!!!

Idea of the Day

Last week I talked about the rise of the internet of everything…machines talking to machines and how Cisco saw this as the next huge development in the digital age…we have had the Industrial Revolution and we are now in the Digital revolution and nothing will ever be the same..In ten years time who knows what the Geeks have come up with…the move from Google last night to buy the Nest Business is a step towards the Internet of Everything…digital thermostats that can be controlled by a smartphone and energy monitoring in real time…machines talking to machines…so who benefits..I talked last week about a small Aussie Modem company NetComm which is at the forefront of this Brave New World..NTC is the code…I like this one..good partnerships with Vodafone internationally and have good technology and IP…think it’s a sleeper and will push higher in the next six months…

Things to make me go mmmmm!!!

 

Forge group has issued a trading update…another bunch of cash down the drain…more problems but the bank is fully supportive…and Brutus is an honourable man!

 

Carabella: PRIVATELY owned Beijing coalminer China Kingho Energy has declared its $71 million bid for Carabella Resources unconditional after securing 17.5 per cent of the Queensland miner’s stock.

No wonder Telstra wanted out of this business for whatever price they could get….All but 2 per cent of the heavy White Pages phone books that used to be delivered around Melbourne and Sydney went straight to the recycling bin, it has been revealed.

And still on TLS , the government and the company building the National Broadband Network will begin formal discussions within a fortnight to rewrite the telco giant’s $11 billion deal to participate in the NBN. Telstra chief executive David Thodey confirmed yesterday.Pressure is increasing for them to either return cash or buy something significant..my bet is the cash return…

Here’s a chart of the bulls v bears ratio in the US…my question is if everyone is long and bullish, who is going to buy it?

20140108_bulls_0

Fed Members shouldn’t open their mouths too often!!But Lockhart did!!

*LOCKHART SEES `GROWING CONFIDENCE’ IN 2014 OUTLOOK

*LOCKHART SAYS U.S. ECONOMY ON `MORE SOLID’ FOOTING

*LOCKHART BACKS $10 BLN TAPER AS CONFIDENCE IN 2014 GROWS

Premier Investments: Local retailers are under increasing pressure to seek opportunities offshore as international competitors set up shop in Australia, according a report on the global retail sector from business advisers Deloitte. Premier Retail, owner of fashion chains including Just Jeans, Portmans, Dotti, Jay Jays and Jacqui E, has expanded its Smiggle stationery chain into Singapore.

Private equity is a seller..what does that say…these guys are the vultures of the market and when they look to sell assets back to a grateful public and funds manager you have to be a little worried..if the businesses are so good why sell them…on the block at the moment are Healthscope, Colorado(Shoe company) and SCA Hygene(Toilet paper)…will be interesting to see how they go..the recent IPO market has hardly covered itself in glory…

Putin named as the third most admired person in the World after Justin Bieber and Miley Cyrus!!!

The Canary in the Coal mine perhaps…the Baltic Dry index which is the cost of moving bulk goods around the world like Iron Ore has had a shocker..worse start to the year for 30 years as it is  down 18% in the last 2 days alone (biggest drop in 6 years), back at 4-month lows. The shipping index has utterly collapsed over 40% in the last 2 weeks. Apparently Columbia is to blame for a ban on coal exports due to environmental concerns…doesn’t look too good though and may signal more weakness in growth and demand…..

 

And finally……apologies in advance…may not be PC but still good…

An English father goes into his daughter’s bedroom and sees a letter
addressed to “Mum and Dad” on the bed.
With a heavy heart he opens it and reads:
Dear Mum & Dad,
It is with great regret and sorrow that I’m telling you that I’ve eloped
with my new boyfriend.
I’ve found real love and he is so nice.
Especially with all his piercings, scars, tattoos, and his big motorcycle.
But it’s not only that, I’m pregnant, and Ahmed said that we will be very
happy in his caravan in the bush.
He wants to have many more children with me and that’s one of my dreams too.
I’ve learned that marijuana does not hurt anyone and we’ll be growing it for
us and Ahmed’s friends.
They’re the ones providing us with all the cocaine and ecstasy we could ever
want.
In the meantime we’ll pray to Allah for science to find a cure for AIDS, so
Ahmed can get better.
He deserves it.
Don’t worry about money. Ahmed has arranged for me to be in films that his
friends Leroy and Jamal make in their basement.
Apparently I can earn $200 per scene. I get a $200 bonus if there are more
than three men in the scene and an extra $100 for the donkey.
Don’t worry Mum. Now I’m 15 I know how to take care of myself.
Someday we’ll visit you and Dad so that you can meet your grandchildren.

Your loving daughter,

Sandra

P.S.  Dad, it’s not true. I’m watching TV at the neighbours.
I just wanted to show you that there really are worse things in life than
Australia winning the Ashes!!!

Have a great Tuesday

Clarence

XXXX

 

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.

Get a Global take on things at www.ntmarkets.com

Get a Global take on things at http://www.ntmarkets.com

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