Morning sports fans,

Just a quickie this morning..as they say…looks like the pullback I have spoken of is a happening thing..patience is being rewarded and the Dow and Euro markets got a smacking last night which will fuel the bears in our market…..Apple sank nearly 4% on the bendy phone..should have made it a feature…seems everyone else is taking the michael as well….think we will see 5200 as I have spoken about in the last few days…the big issue is rising rates and although the market has chosen to ignore the obvious for a long time ,its starting tow ale up to the fact that in the US and the UK rates are on the rise..2015 will be the year of the rate rise..albeit a small increase..of course here we need lower rates and Zombieland is going to be in negative territory for some time to come!But the free money merry go round is coming to an end..buying anything and it goes up is over..its a stock pickers market so be careful out there.

The banks are on the nose at the moment as the RBA is now talking some sort of macro package to halt the advance of the property market…a backflip with a pike..NZ introduced some legislation to help take the wind out of its market and where they go we will follow…restrictions on investor borrowing and overseas buying is a good place to start..there was some talk about a $1500 tariff for overseas guys to buy a property…like that is going to stop them!!!

Anyway I wrote a day or so ago about the prices the banks could go to if they kept the same dividend and investors wanted a 6% yield…I expect we will see that and then fill yer boots!!!

Remember people volatility equals opportunity…and patience is a virtue…

Idea of the Day

For this looking to buy good long term capital growth plus a decent dividend ,the Future Generation fund I have banged on about looks like a great bet…plus they are cashed up and in no hurry to put the money into the market..so this pullback is really good for them…we saw another LIC present the other day,Packers right hand man from Ellerston capital which has a strategy that Aussie banks are expensive and the rest of the world banks aren’t…brilliant and so 2013…anyway the reason world banks are cheaper is they are still in a mess…continually getting investigated and fined…I mean when was the last time Aussie banks copped a $10bn fine for mortgage fixing or the like…apart from CBA and Macquaries slight misdemeanours that is..

One of my faves LYC is currently suspended pending a life saving equity raising..should be back monday…existing shareholders likely to get short end of the deal but at least they have done a deal with the Japanese …albeit at the last minute..I await developments after the issue…

Things to make me go mmmmm!!!!

Apple fail!!!IOS pulled and the bendy phone is back…epic fail…is that a  bell ringing for the tech stocks…emperor clothes?

And finally……some adult riddles

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Q. What’s the definition of ‘Macho’?

A. Jogging home from your vasectomy.

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Q. What’s the difference between a G-Spot and a golf ball?

A. A guy will actually search for a golf ball

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Q. Do you know how New Zealanders practice safe sex?

A. They spray paint X’s on the back of the sheep that kick!

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Q. Why is divorce so expensive?

A. Because it’s worth it!

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Q. What is a Yankee?

A. The same as a quickie, but a guy can do it alone.

Have a great weekend

Clarence

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