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Morning sports fans,

 

That’s Buy the Dip for those who don’t read zerohedge!

 

The inevitable bounce last night on Wall Street as the Fed said nothing vaguely controversial …Iron ore also bounced so that should help resources a little..oil looking good too..few numbers out today and tonight but after the torrid week we have had expect some relief again..although yesterday’s Lazarus like rise, after being down 40 odd points, may have anticipated some of the good cheer overseas…still the market does seem to be treading water albeit in a thin volatile fashion…I mentioned yesterday that I thought the greatest trick the devil ever pulled etc…well the Fed is on course to perform a similar trick as it simultaneously withdraws the money printing whilst at the same time creating the illusion that it is still in there doing everything it can to help the economy…the question remains what happens when the market rumbles to this…until then its business as usual?

 

TLS has been all the rage as it sets a 9 year high!!!all that cash..all those customers..all those tasty dividends what is not to like…suspect they will continue to firm…

 

Treasury Wine Estates had another good day yesterday as a US investor emerged with 5% of the company…these guys aren’t silly but the upside is fast disappearing ..well at least the risk reward is..was a fan at 380…at 507 things are not quite so cut and dry…maybe you could value them on a really good day at 530 maybe..but that is a stretch given what other comparables are selling for..so if they push 520/530 time to take the money and run..and what a run its been…380 to 510 in a matter of a month or so…

BlTXV97CYAATa4K

 

 

 

 

Still cautious…volumes remain low and risks remain…churning to continue…5300 still my target …

 

Idea of the Day

 

Yesterday’s news that Captain “don’t call me Ishmael” Coleman from the good ship Woodside has abandoned his quest to land the big one raises the question of what he is going to do with the cash…the question should be what is he going to do to grow the company, not how he will reward shareholders…Moby Dick was seen as the growth path for the company and the market seemed pretty keen on the deal in Israel..not anymore..far better to just give the money back it seems….the other story doing the rounds is the company merging /taking over OSH…interesting and may make some sense…of course the other issue is what Shell will now do with its holding…if they are giving money back to shareholders they will be keen to hold on..whatever the outcome it seems that this one will push higher as speculation continues..$42.00 seems very doable!!

 

Things to make me go mmmmmmmm!!!

 

News from the coalface today with JHX numbers out this morning. Strong growth in Europe and the US has helped building materials supplier James Hardie more than double its full year profit and increase its dividend payouts. In the year to the end of March, profit surged 118.7 per cent to $US99.5 million ($107.74 million), including impairments, up from $US45.5 million in the previous corresponding period.

 

Newcrest Mining’s new $2.2 billion Cadia East mine is set to underpin major gold production from the Cadia Valley near Orange in NSW for at least the next 30 years. The mine was officially opened yesterday.

 

Tapering to continue…actually the Fed said nothing new last night at all…BTDs(Buy the Dips)..low volume and VIX at its lowest level in 9 months. Complacency is back!!And all the while the hedge funds operators and Private equity guys are trying to pull back their exposures…the recent hedge fund conference was dominated by words of caution…the IPOs that the Private equity guys are trying to get away are another sign..

 

Princeton University paid four of its endowment managers a combined $9.2 million in 2013. As Bloomberg reports, this is a 46% increase from a year earlier and four times the increase Harvard University paid its top investors. The endowment gained only 11.7% last year. It’s good to be the king.

 

Few things out today…Flash HSBC China Manufacturing PMI at 11:45am Europe and followed after market close Europe, Germany and France Flash Manufacturing PMI.

 

Euro area consumer confidence increased more than forecast in May, as inflation held at less than half the ECB’s target.

 

President Vladimir Putin hailed an “epochal event” yesterday after state-run natural gas exporter OAO Gazprom (GAZP) signed a $400 billion deal to supply fuel to China for 30 years.

 

There is a growing voice suggesting that the US dollar will lose its reserve currency status. Looks like China is vying to step up to the plate here as it becomes the world’s most dominate economy.

 

Watched our wonderful PM last night being interviewed on radio…the wink..are you serious?This guy is our PM and head boy at the G20 at the moment ..isn’t he allowed to wink anymore..or get a scholarship for his daughter…what is the world coming to…next you will be judged for accepting an expensive bottle of wine…even one you can’t remember..just ridiculous…

 

Belgium has quickly become the third largest buyer of Treasury bonds, just behind China and Japan, purchasing more than $200 billion in securities in the past five months, adding to a total stash of around $340 billion as Russia sold a record $26 billion, or 20% of its holdings. It also bought 900,000 Ounces Of Gold Worth $1.17 Billion In April.

 

This seems more like infrastructure for the 21st Century.. projects planned for the future include the decision to build 172 water conservation projects to expand irrigation areas, improve supplies and attract agriculture investment. That is China in case you were wondering. We are just building more car parks!

 

They are scary and they are creepy…the Abbott family! Sent to me by a die hard liberal!!

abbott family

 

And finally……bit rude so apologies in advance but it’s tough to get clean funny ones …keep them coming though…I have my regulars but always happy for new blood and humour..

 

 

 

 

LITTLE HARRY ON MATHS

A teacher asks her class,

 

‘If there are 5 birds sitting on a fence, and you shoot one of them, how many will be left?

She calls on little Harry.

 

He replies, ‘None, they will all fly away with the first gunshot.’

 

The teacher replies, ‘The correct answer is 4, but I like your thinking.’

 

Then little Harry says, ‘I have a question for YOU Miss Rogers’.

 

There are 3 women sitting on a bench having ice cream:

 

One is delicately licking the sides of the triple scoop of ice cream.

 

The second is gobbling down the top and sucking on the cone.

 

The third is biting off the top of the ice cream

 

Which one is married?’

 

The teacher, blushing a great deal, replied, ‘Well, I suppose the one that’s gobbled down the top and sucked the cone.’

 

To which Little Harry replies, ‘The correct answer is ‘The one with the wedding-ring on, ‘but I like your thinking.’

 

Have a great Thursday and back on the radio at 12.20 in Newcastle anyway!!

 

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.

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

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