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Morning sports fans,

When they were up they were up and when they were down they were down! Volatility is back baby…means opportunity …after last weeks’ dismal performance coming mainly form financials ,we should see a little bounce today but don’t get too carried away…apart from the free money out there it’s hard to get excited at the moment…news this morning that Treasury Wine Estates has terminated all discussions with private equity will come as a shock..this was a done deal..two bidders and keen as mustard until they saw the numbers? Anyway the hedge funds arbitrage guys are going to take a bath..there will be panic burnt fingers and a rush for the exit…shrewd investors will use this major set back as a chance to pick up some cheap stock…I reckon if we see them below 4.40 its worth a look..anyway we shall see…

So expect to see a small bounce today but the question is …is it safe? Well is it?

isit safe

Marathon Man

Not sure…I believe we will see 5200 on the ASX200 by the end of October as the move out of the high yielders continues…interest rates in US and UK will rise in 2015 but you know what, not by much..it will be mostly symbolic as we move back to a more normalised settings…with an Aussie bank yielding close to 6% fully franked still gonna be pretty attractive…so at some stage they will find that base…patience is a virtue..

Idea of the Day-Time to look at MOC I think….

One of my old favourites Mortgage Choice has been suffering in recent weeks as the financials cop a hiding..you know what, these guys are good..they are busy as all hell and banks need them more and more to fight their competitors in the mortgage market…we are in the midst of a housing boom…even when it finishes the prices will allow refinancing and the home ATM to buy that new car, plasma or a holiday…this is a classy company which I know well…they now yield nearly 6% fully franked, and expanding business and great management in a growing sector…good value at 2.55 I reckon…

Things to make me go mmmmm!!!!

 

US GDP data revealed the US economy rose by 4.6% annualised and up from the prior reading of 4.2%.If the last quarter comes in at 3% then for the year to will be about 2% GDP growth…wow..impressive after the Fed largesse!

Weekend data in China revealed lower industrial profits. Data released on Saturday showed a 0.6% fall in August.

 

The prospectus for Medibank Private will reveal “healthy” progress on a cost reduction program ahead of this year’s $4 billion-$5bn float, as the group seeks to fend off recent criticism that it is one of the least profitable health insurers in the sector.

 

Seems Obama and the US Intelligence service has been surprised about the rise of IS…I mean really…how big is their budget…these guys have massive power,massive budgets and still they are surprised…scary..

I was watching one of my favourite programs QI the other day and Mr Fry was outlining how the then PM of the UK would authorise the launch of a nuclear strike by the use of a public phone box and that drivers would need to have a stash of pennies for the call…the PM ever practical pointed out that in an emergency they could reverse the charges…admittedly this was in the 50’s but glad the security of the west was  due to the reverse charge call!!!

The head of PIMCO Bill Gross has jumped ship to a rival..after suffering a crap year in performance ,massive outflows,the loss of his business partner and now an investigation into performance numbers, he is off…you know what if I had his money I would be retired and playing golf!!

us gdp

This chart demonstrates how the free money printing will be taken up by Zombieland and the land of the Rising Sun…look at Japan go!!!yeah baby..

Lovely article today in the SMH about how big ASX200 companeis are avoiding tax…lest face it grwoinga business is much harder than just reducing your tax bill….top of the pops was 21st Century Fox,Singapore Telecom,Westfield,BHP,RIO and NAB and CBA….

Shane Warne is back on the marlet just as Clooney marries….lose one, win one ladies?

Rosneft and Exxon have struck a massive oil field in the Kara Sea(Artic Circle near Russia) which may prove to be bigger than the Gulf of Mexico..love how the US and the Russians can work together…sanctions may prove interesting for Exxon though!!

The collective debt of the developed economies has surpassed the $100 trillion mark….we may need to find life on another planet to bail us out at this rate!!!

Hong Kong is starting to get interesting too…yet another issue to worry about…

And finally…I am indebted to my good friend Hans for these classic quickies…

 

 

Last night I reached for my liquid Viagra and accidentally swigged from a bottle of Liquid Paper.

I woke up this morning with a huge correction.

My girlfriend said she was leaving me due to my obsession with the 60’s group The Monkees.

I thought she was joking ……… And then I saw her face……

My budgie broke his leg today so I made him a little splint out of a couple of Redhead matches.

His little face lit up when he tried to walk… unfortunately, I had forgotten to remove the

sandpaper from the bottom of his cage.

Last night I was sitting on the sofa watching TV when I heard my wife’s voice from the kitchen,

‘What do you feel like for dinner my love …… chicken, beef or lamb?’ I said, ‘Chicken, please.’

She replied, ‘You’re having soup you fat bastard, I was talking to the cat!’

And finally, finally a word from Maudlin Economics…on the end of QEIII…

We are the hollow men

We are the stuffed men

Leaning together

Headpiece filled with straw. Alas!

Our dried voices, when

We whisper together

Are quiet and meaningless

As wind in dry grass

Or rats’ feet over broken glass

In our dry cellar…

This is the way the world ends

This is the way the world ends

This is the way the world ends

Not with a bang but a whimper.

–  T. S. Eliot, “The Hollow Men”

Have a great Monday

Clarence

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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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