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Morning sports fans,

Markets are starting to worry me slightly..more so than usual..I have been cautious for a while but it does seem that the engine of the market here and overseas is being driven by so few stocks..here it’s the banks, in the US it’s the tech stocks…meanwhile the broader market and the small caps are struggling ..this is not healthy and as we saw yesterday in our market when it cracks, it cracks…70/80 off in a heartbeat…This will continue as the world is an unhappy place at the moment…US is patchy and support being withdrawn, interest rates starting to bubble higher, US dollar is strong as fast money is repatriated back to Uncle Sam,UK slowing and heading into winter.. Zombieland is stuffed…Super Mario is now talking in riddles again, China is slowing and shows no sign of being rescued by stimulus and Japan is not exactly going to plan either…whilst here in the land downunder our economy is going backwards, our freedoms are eroded, our leaders are dills and trying to scare the hell out of us, and the only thing working for us is the property market! And don’t get me started on the declining Iron Ore price which now has a 7 in front of it…not pretty…so expect another day in the doldrums as we continue to suffer the slings and arrows of outrageous hedge funds!!Banks and miners to drive us down as the Aussie dollar collapses too…

Looks a bit shagged out to me!!

atlas

I have a new target on the ASX 200 5200 during October…

Idea of the Day-Are we there yet? Are we there yet?

 

Our market has been driven by the yield stocks….Banks,TLS WES and WOW pretty much covers it…so what happens when Yield is not enough…what happens when everyone has bought truck loads of these stocks, truck loads of investment properties and has no more money left….what indeed…are we seeing the unravelling of the great yield play…will interest rate rises in the US drag all the free money back to the US…looks like it…so my question is at what stage do the banks become value again and we start top buy them…I reckon that a 6% yield fully franked is pretty hard to turn down…AAA rated and in an oligopoly position …so assuming that they DO NOT CUT the dividends going forward what is 6% yield equivalent to?

CBA-$66.50

ANZ-$29.00

NAB-$32.50

WBC-$29.50

So not yet then!!!

Things to make me go mmmmm!!!

 

To paraphrase Winston on Sydney house prices…”Never have so many, chased so few, for so much!” The media and the agents and the government seem to be addicted to stoking the real estate fire…

 

Love school holidays..no cars on the road!!Actually no kids at school either!!!Just HSC to come…weird how they graduate before the biggest exams of their young lives…hard to keep up motivation!!

 

The horse has bolted but the US Treasury is trying hard to shut the gate…clampdown on the new ‘Black’ deal of Inversions!!This is where a US company takes over a  foreign company so that they avoid paying US taxes …happening a lot with Irish companies…Uncle Sam is closing this loophole…slowly…

 horse bolted

 

Some good news … TPG Telecom expects to lift earnings 25 per cent over the next year after growth from its consumer and corporate division saw its full year profit increase by 15 per cent.TPG made a net profit of $171.7 million, up from $149.2 million a year ago.

I was asked last week on Sky what my views were on Kathmandu..weather related stock,I said….today’s numbers confirm that..cold snap equals fleece…warm spell equals tents! Kathmandu this morning posted a full-year profit of $NZ42.2 million for the year ending July 31, down 4.5 per cent, which was at the top of guidance provided last month. And a big push globally…UK sales up 13%

 

The Bloomberg Commodity Index dropped 0.7 percent to the lowest level since July 2009 on speculation demand will drop amid slower growth in China. Copper retreated 1.7 percent and nickel tumbled 4.2 percent to a five-month low. Brent crude fell 1.7 percent to $96.71 a barrel.

Not sure the US banks are going to continue to hold up either!

us credit

In the US Existing home sales fell 1.8% in August as investors stepped away from the car. This was the first decline in four months and compared to August last year sales were down 5.3%.

Investors accounted for just 12% of transactions the lowest level since November 2009.

 

Cloud-based services group Urbanise.com surged 40 per cent on its debut on the ASX yesterday, after closing a $20 million ­initial public offer.

“You are poor, because you have no ambition.” Go big, or go home. Otherwise, you’re wasting your youth. So says Jack Ma from Alibaba!

Brilliant stuff from a newsreader in Alaska as she read a story about Medicinal cannabis and a collective she herself ran, she resigned on air with the immortal line “F**k It, I quit!”

Whilst over in the UK Tesco has suspended 4 executives as a GBP 250m hole appeared in their accounts…Deutsche also has a rogue trader in the house…FX trader hiding his losses…amazing in this mark to market day and age!

sinkhole money

 

 

Consumer confidence numbers today ..should be fun!!

BHP ADRS and RIO UK were smashed 3.5% last night..ooouch!!!

 

 

And finally…….keep them gags coming…

The ATO claimed a boat owner wasn’t paying proper wages to his help and sent an agent to Bega to investigate him.

ATO inspector: “I need a list of your employees and how much you pay them”.

Boat Owner: “Well, there’s  Clarence, my hired hand, he’s been with me for 3 years. I pay him $200 a week plus free room and board. Then there’s the mentally challenged guy. He works about 18 hours every day and does about 90% of the work around here. He makes about $10 per week, pays his own room and board, and I buy him a bottle of Bundy rum and a dozen VBs every Saturday night so he can cope with life. He also gets to sleep with my wife occasionally”.

ATO inspector: “That’s the guy I want to talk to – the mentally challenged one”.

Boat Owner: “That’ll be me. What’d you want to know”?

 

Have a great day

Clarence

XXXX

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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