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Morning sports fans,

 

You may have to google Angelica Teach!!

 

What a game..feeling a bit tired now but worth it…unlucky not to come away with a  point…just hope England win or no one left to barrack for..have to go with the Dutchies maybe…

 

Two songs spring to mind from last night’s FOMC meeting….’Steady as she goes’..The White Stripes and ‘Blame it on the Boogie! Or in the US case the weather…seems the long cold winter has knocked the US economy for six and Yellen (not Screamin’) has downgraded the Fed’s GDP forecasts…I know it’s always something right…still by September the Fed wont be pumping in any money at this rate..but rates to stay close to zero for a long time to come…

 

So our market will rally a little today with no real enthusiasm…the money being sucked out by IPO’s, WPL and placements is still weighing us down..my Sell in May call hasn’t been too bad after all…we are now down 100 points from then…banks holding up pretty well but the real damage has been done in the Iron Ore stocks…for the year we are up 30 points..says it all…

 

I remain cautious….alert but not alarmed…iron Ore up 1% so that will help us today..SPI up 20 so back to 5400…this is the level where we keep bouncing off so expect a further bounce possible but it remains stuck in a sideways to down channel..I think anyway..

 

 

Idea of the Day

 

There is growing interest in this country on tech start ups…hardly surprising given the explosive growth of some and the ‘lotto’ like success stories..of course you only hear about the winners and 98% will fail and fall in a screamin’ heap..but I had a meeting with someone who is looking at a very different approach…it’s a new fund looking to raise $100m and will invest in multiple starts ups..small amounts of money invested over 100-150 start ups and the right to co invest along the way..as Darwinism takes its course and they drop by the wayside the funnel of successful ones gets smaller and they continue to invest as long as three other people invest..sounds  like a good idea to me..they realise that most fail and that it’s hard to pick winners…they use a partnership with a group of incubators and put money in over a five year period…only for professional and sophisticated investors but if that’s your bag baby let me know and we can talk more…while I am on the subject if you are a client who is a professional or sophisticated investor make sure we have your forms set up so I can offer you things like this.

 

 

Things to make me go mmmmm!!

 

England game tonight!!4am!!!

 

Futures contract expiry today so staggered opening..and bigger volumes..

 

All those hedge funds that took the easy money in the WPL placement..sorry you obviously didn’t read the fine print and now are under water…love the suck and turf policy..suck up and then when you get the stock turf it straight away.

 

Now I am not a doomsday merchant but it  does seem that the central bankers are really struggling to get their message across..they are all warning of complacency towards risk..I remember Big Al the markets pal, talking about ‘irrational exuberance’…not we have Yelln, Carney and others warning that although things are pretty good and rates will remain low.the VIX is close to it’s all time low…lowest since 2007…nothing to worry about at all…except low growth, low inflation and huge Central Bank debt…Japan is truly shocking as they pump in a Trillion dollars a year!!I mean pretty soon that adds up right?

 

Here’s a taste of the de regulated Uni world as 3P learning which has Mathletics is pushing ahead with a price increase from 10 to 15 bucks a student next year..it’s float is pretty expensive at 34 times 2015 net profit!!!!!!And its oversubscribed…so they say..not me…they said WPL was oversubscribed too and they were all long term holder…and they believed them!!

 

Looks like FMG isn’t the only one that is having to discount its Iron Fines as RIO slashes prices by 13% to around $73 a tonne for its lower grade product..next thing they will bring back long term contracts at this rate!!!!

 

Secret Solly has nearly 10% of DJS!!!should be an interesting two weeks til the meeting…

 

Steel giant Baosteel is on the verge of taking control of a significant Australian iron ore project after winning its $1.4 billion battle for Aquila Resources. Perth-based Aquila shocked the market yesterday when it revealed that its executive chairman and largest shareholder, Tony Poli, would accept the ­Chinese state-owned entity’s $3.40-a-share offer.

 

You know a really scary thing the current baddies of the Terror World, ISIS put out an annual report.. has the balance sheet, it also has the cash flow, it has the weapons inventory, the property, refinery plants and bomb equipment, and the terrorist stuff. It looks like the Investment bankers may even try to float them later this year..they have floated everything else..few interesting graphics from the report..I don’t read Arabic well so just looked at the pictures..much like a Aussie prospectus in that regard too!!!

 ISIS report 2012_0

 

 

In the US mortgage rates have ticked up 5bps yet refinancing applications are down 7%!!

 

Yellen has been asked whether things are in a bubble…Specifically, based on some “model” the Fed watches to get a “feeling” for valuations, she concluded the equity valuations are not out of historical norms.Yet one broker has said valuations have only been this high 10% of the time…

 

 

Amazon reveals a 3D Smart phone called a Fire Phone…it changes perspective depending on the angle you look from…

 

The Feds record on GDP revisions is pretty crap really.

Fed 2014 GDP forecast

 

Thanks to the boys at www.zerohedge.com

 

Cash is king in Japan..from Bloomberg.. Japanese firms boosted their cash stockpile to a record in the first quarter, underlining challenges Prime Minister faces a year and a half into his drive to reflate the economy. Nonfinancial companies’ holdings of cash and deposits rose 4.1 percent to 232 trillion yen ($2.3 trillion) at the end of March.

 

And finally…..not sure I can top yesterday’s joke..but seems appropriate now that Hil;ary is denying she ever knew Obama in anticpipation of her run for Presidente in 2016

 

HillaryEvil

 

 

Several days after President Obama was re-elected president, he went over to see Bill and Hillary Clinton for dinner at their spacious home.

 

After drinking several glasses of beer, he asked his host if he could use his personal bathroom.

 

When he entered Bill Clinton’s private toilet, he was astonished to see that Clinton had a golden urinal! Wow!

 

The next day, Obama told his wife, Michelle, about the urinal in Clinton’s private lavatory.

 

“Just think,’ he said, ‘maybe I should get a gold urinal too.

 

But on the other hand I think that it may be just a bit too self-indulgent…even for a guy like me!”

 

Later in the week, when Michelle had lunch with Hillary, she told Hillary how impressed her husband had been at his discovering that Bill had a gold urinal in his private bathroom.

 

Later that day, when Bill got home, Hillary smiled and said to Bill:

 

“I found out who pissed in your saxophone.”

 

 

And one last thing I always like feedback on this email and would be good to get some ideas as to whether you find it useful,informative,worthwhile etc..any suggestions as I am toying with changing things up a little..did a blogging for business course you see so have lots of new ideas!!

 

Have a great Thursday

 

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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