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Morning sports fans,


A hundred years ago on August 4th WW1 broke out after Britain declared war on Germany (they started it a few days earlier on 28th July)…it kicked off with an assassination of a minor Prince and his pregnant wife in Serbia a month earlier and just built and built…Now this scenario is unlikely to happen again(we hope) but the escalation in rhetoric with Russia, the sanctions and the actions of RasPutin make me a little concerned..wars don’t get fought by brave soldiers in the trenches anymore..it’s all drones and missiles..at least in the civilised west…ISIS seems to be more hands on unfortunately..but these events can still have a disastrous impact on the global economy …we are all collateral economic damage in this new cold war..it certainly doesn’t help world-wide growth any…last night the US had a small fall back with the VIX pushing ahead to be up nearly 6% to 13.29 for a gain of 29% since its seven year low recently…volatility is coming back…geopolitical events ,rising rates and still no growth in Zombieland will create opportunities..US GDP number will be interesting…


Yesterday we had a presentation from Anton Tagliaferro from IML..(see below) and his investment methodology is simple..buy good quality companies with recurring earnings that have a competitive advantage ,good management ,can grow their earnings and dividends and the price is right…simples…price is always the hard thing so patience is required sometimes and to go against the crowd..


Iron ore up so miners better…industrials slightly weaker so another nothing day as we await the Fed meeting results…results season here kicks off in the next week or so..some trickling through now and some fessing up about shockers pre the results season..think QBE..three things in life you can be certain of…Death Taxes and QBE downgrades..who would have thought they would get into trouble with Argentinian workers compensation claims..I mean who would have though they even were exposed to that!!!and more importantly why !!!



Idea of the Day-Looking for conservative exposure to ASX Ex 20 Stocks, look no further.


Investors Mutual run by Anton Tagliaferro has been a huge success story in the funds management game..not only for themselves but more importantly investors now managing $5bn of mainly retail money. They have decided to launch a Listed Investment Company(LIC) to raise $200m.It will have the same philosophy as their other investment style with one significant difference. They will invest in companies outside the two 20..They are disciplined and focussed on the long term. They are growth and income focussed and this new fund called QV Equities will be listed on the exchange. The other beauty of this new LIC is that the fees are relatively low at a maximum of 0.9% and NO performance fee..


If you are looking for a conservative manager with a proven track record ,low fees and a focus outside of the banks and TLS this is worth looking at ..nothing under $200m market cap though and a bias towards value and industrials..no specie miners..


Also they have six months to put the money to work and there is an option issue to investors in the IPO.


I am happy to send through more information and you can apply through us as we are a lead manager and therefore have priority access..


Here’s a quick run down from the founder of IML who are the managers of the new fund.




Suitable for investors looking to diversify away from traditional SMSF type investments in banks etc..


Happy to answer any questions if interested.



Things that make me go mmmmm!!!


A rare occurrence in Scotland overnight when they cheered the English swimmers on to beat Australia in the Mens 100 m Relay!!Usually its anyone but England…and the vote to come..I think they will elect to stay with UK for the same reasons that we voted to stay a monarchy…fear of the politicians changing things…


There is a school of thought that says where UPS goes the global economy follows….UPS, the world’s biggest courier company cut earnings forecast for the full year after boosting spending .Earnings for the quarter were reported below expectations, at $1.21 v estimates at $1.25 sending UPS shares down 3.7%.


US Treasury auctioned $35 billion of Five year notes at a high yield of 1.72%.


Just shows WTF do central bankers know about stock valuations…I mean Yellen was telling everyone that Social Media stocks were over valued….so she should know right?Right?Well seems she, like anyone over 30 ,is a dinosaur!!! Twitter rallied 33% after announcing increased membership of 271 million with YoY growth at 24% with sales more than doubling to $312.2 million. Bit squeezed there Janet!!!










Here’s a look at Twitter..






Seems consumers have shrugged off the negative vibes of the draconian budget.. the ANZ Roy Morgan consumer confidence for week ending July 27 rose by 2.4% to 116.2 (highest read since Jan. 26)….of course the cynic in me could say that maybe its because none of the bad stuff has been passed and its off the front page due to MH17…once the cuts and emasures are in consumer confidence will take a hit again…and the poor old retailers must be in trouble…this winter has been ridiculous..its 22 in Sydney!!!So wrap up warm with those scarves and jumpers…not!!!gonna be some serious stock take sales in the spring!!!


Womenswear retailer Noni B, which has been fielding offers from potential buyers, has flagged a bottom line loss of almost $8 million for 2014 after weak sales over the past month.


High flyer LNG will be back today following a $38m placement to buy the Hungry Bear project in Canadia.


Now I know that REA bought a big slice of IPP in recent days so I thought it would be a good time to have a look at their valuation…$670m and EBITDA of $1.7m …yup…must be a huge opportunity!!!


If Woolies and Coles continue to push into financial services which is inevitable given they are run by Poms,how will the banks respond? Will it hurt their business?


S&P has reaffirmed our AAA rating..of course Jokin Joe is talking this down suggesting that we have a major issue if we don’t enact all his budget measures….all the while telling the NZ media that we are going great and there is no issue at all with our economy…can’t have it both ways Joe…love it when career politicians lecture us on unemployment…go Erica Bets!!Seek will do well out of the 40 jobs a month regime!!


Argentina about to default again..$29bn hit in the next day or so likely…overdue interest…equals their whole foreign reserves..


Nomura,Japan’s largest securities firm yesterday posted a 70 percent drop in net income to 19.9 billion yen ($195 million) in the three months ended June, missing analysts’ estimates for 26 billion yen. Smaller Daiwa Securities also reported the second straight decrease in quarterly profit.



And finally…..


A man walked out to the street and caught a taxi just going by. He got into the taxi and the cabbie said, “Perfect timing. You’re just like Brian”

Passenger: “Who?”


Cabbie: “Brian Sullivan. He’s a guy who did everything right all the time. Like my coming along when you needed a cab, things happen like that to Brian every single time.”


Passenger: “There are always a few clouds over everybody.”


Cabbie: “Not Brian Sullivan. He was a terrific athlete. He could have won the Grand Slam at tennis. He could golf with the pros. He sang like an opera baritone and danced like a Broadway star and you should have heard him play the piano. He was an amazing guy.”


Passenger: “Sounds like he was something really special.”


Cabbie: “There’s more. He had a memory like a computer. He remembered everybody’s birthday. He knew all about wine, which foods to order and which fork to eat them with. He could fix anything. Not like me. I change a fuse and the whole street blacks out. But Brian Sullivan, he could do everything right.”


Passenger: “Wow. Some guy then.”


Cabbie: “He always knew the quickest way to go in traffic and avoid traffic jams. Not like me, I always seem to get stuck in them. But Brian, he never made a mistake and he really knew how to treat a woman and make her feel good. He would never answer her back even if she was in the wrong; and his clothing was always immaculate, shoes polished too. He was the perfect man! He never made a mistake. No one could ever measure up to Brian Sullivan.”


Passenger: “An amazing fellow. How did you meet him?”


Cabbie: “Well, I never actually met Brian. He died. I’m married to his bloody widow.”   



Have a great day …need more sponsor money for Starlight foundation ..would be nice to get to $1000 for the sick kids… https://city2surf2014.everydayhero.com/au/henry-2



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