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Morning sports fans,

I will make it short and sweet this morning as I am due on a boat on wonderful Sydney Harbour shortly. No rest for the wicked. I am taking a client so its work related!!

So expect the Friday bounce today…Dow shrugged off the Yellen ,not screaming, comments and decided that everything in the World is right…Few more sanctions for those naughty Russians but despite tension remaining high the gold price retreated..Iron Ore stuck at 110 so that’s all good.

This picture sums it up…Thelma and Louise markets!!!


Of course with all these problems piling up there is only one solution..

Thelma: [with a cliff in front of them and cops behind them] OK, then listen; let’s not get caught.

Louise: What’re you talkin’ about?

Thelma: Let’s keep goin’!

Louise: What d’you mean?

Thelma: Go. [nods ahead of them]

Louise: You sure?

Thelma: Yeah.

We will be up 30 today as banks lead us higher…what’s good for the US is good for us after all…Golds will suffer…

I talked briefly in my PM report about the “Minsky moment”…here is what is says on Wikipedia!!!

“A Minsky moment is a sudden major collapse of asset values which is part of the credit cycle or business cycle. Such moments occur because long periods of prosperity and increasing value of investments lead to increasing speculation using borrowed money. The spiraling debt incurred in financing speculative investments leads to cash flow problems for investors. The cash generated by their assets no longer is sufficient to pay off the debt they took on to acquire them. Losses on such speculative assets prompt lenders to call in their loans. This is likely to lead to a collapse of asset values. Meanwhile, the over-indebted investors are forced to sell even their less-speculative positions to make good on their loans. However, at this point no counterparty can be found to bid at the high asking prices previously quoted. This starts a major sell-off, leading to a sudden and precipitous collapse in market-clearing asset prices, a sharp drop in market liquidity, and a severe demand for cash.”

Idea of the Day

As I suggested yesterday to take profits in DNA they have gone into a trading halt to raise more money!!!1:2 at 1.33 so that will take the wind out of their sails a bit…field trip at the moment with eager punters inspecting the progress of the Vietnamese casino…

Yesterday I had a presentation from Acorn Capital on their new microcap fund they are doing..they are raising $100m in an IPO ..these guys know their stuff nad have been investing for large super funds in the Micro cap and unlisted space for a long time..since they were founded in 1998…impressive team of analysts who do the numbers and have data going back to 1970 .Their performance has been pretty good since their insto strategy on microcaps started in 2009 with 25% pa..not too shabby..now you should never put your house on Microcaps but if you have loads of banks and TLS etc plus the BHP RIO WOW and WES covered then this is a good way to diversify and get some Alpha ..alpha is bang for buck…performance/risk…

I am happy to send out more details on this one but the joy of investing in the IPO rather than wait til they come on the market is you get a free option at 1.00 for 18 months…if this appeals and I would suggest it should let me know and I can shuffle across more details..

Things to make me go mmmmm!!!

From the wonderful people at www.zerohedge.com

Last week Gazprom’s Chairman Viktor Zubkov sold his entire stake in the company days before the Crimean invasion .Today, on the heels of the latest round of US sanctions against Russia’s so-called “Putin cronies”; Cyprus-based oil trader Gunvor Group announced that co-founder Gennady Timchenko (estimated wealth $8.5 billion) – who was named on today’s sanctions list – sold his entire 44% stake in the company yesterday.

And in the Ukraine.. Ukraine expects to increase domestic gas prices by 40% once discounted import prices from Russia expire, the country’s Energy Minister Yury Prodan told journalists in the European Parliament on Thursday.



In the ultimate threat though Obama has threatened to deploy the “Hilary Clinton!! If anyone can get RasPutin to back down its her..


We could also send the Julie as well if we felt it necessary!!!


Truly scary…take that Vladimir!!!

Fortescue: MMK may sell 5% stake in co. by yr-end, MMK Chairman Victor Rashnikov says.

Metcash: Forecasts 13%-15% decline in fiscal yr 2014 underlying EPS; sees impairment charges A$30-A$35m.

Now after yesterday’s shocker from Weekend at Bernie’s (Brookes)..UK retailer Next has shown the way to do it.. Next has unveiled £695m of underlying annual tax profits, to become the biggest retailer by profits in Britain. It is the fifth year in a row that the high street retailer’s earnings per share and ordinary dividend have grown by more than 15pc. The big success has been Next’s ability to combine “clicks and bricks”: although sales on the high street were £2.2bn compared to online’s £1.3bn, the web trade was more profitable – £358m to £347.7m. It is also growing rapidly at 12.4pc.Think they should be hiring their team !

I was once told by a lawyer friend that in court you should never ask a question you do not know thw answer to…seems to be the same when they stress test the banks… The Federal Reserve said 29 of the 30 largest banks subjected to a stress test have sufficient capital to withstand a deep recession while continuing to pay dividends…for dividends read obscene bonuses and termination payouts!!!

From the Chinese press…One more possible bankruptcy is looming in China as the largest private steel maker in Shanxi has failed to repay debt totalling 3 billion yuan (HK$3.75 billion) on time.”Highsee Group’s 3 billion yuan debt was overdue last week,” the 21st Century Business Herald reported yesterday. “The company is running in red, and has failed to pay workers for months. Many of its furnaces have stopped operating.”

The Hang Seng fell another 386 points yesterday to 21,182 and accumulated losses now exceed 20%, the often used indicator for a bear market. There has been some speculation that investors from the mainland have been liquidating Hong Kong holdings

In mainland China stocks also closed lower with the Shanghai Comp down 28 points to 1993, the Shenzhen comp dropped 29 points to 1065 and the CSI 300 closed  down 33 points to 2086.

And finally…an oldie but a goldie from Hans..

A blonde walks into a bank in Sydney and asks for the loan officer.

She says she’s going to Hong Kong on business for two weeks and needs to borrow $5,000.

The bank officer says the bank will need some kind of security for the loan, so the blonde hands over the keys to a new Mercedes.

The car is parked on the street in front of the bank, she has the title and everything checks out. The bank agrees to accept the car as collateral for  the loan.

The bank’s manager and its officers all enjoy a good laugh at the blonde for using a $250,000 Mercedes as collateral against a $5,000 loan.

An employee of the bank then proceeds to drive the Mercedes into the bank’s underground garage and parks it there.

Two weeks later, the blonde returns, repays the $5,000 and the interest, which comes to $15.41.

The loan office says, “Miss, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled.

While you were away, we checked you out and found that you are a millionaire. What puzzles us is, why would you bother to borrow $5,000?”

The blonde replies…

“Where else in Sydney can I park my car for two weeks for only $15.41 and expect it to be there when I return?”

“Which Bank?” Can!

Have a great weekend!!



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