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Morning sports fans,
Hard to get enthusiastic today after a three day weekend…especially given the state of the market…big US jobs number on Friday..hard to remember that far back ..but with US unemployment at a headline of 5.9% it’s hard to see any justification for the Fed to keep rates where they are…a new normal is coming ..rates will rise sooner rather than later..not by much but it will be a signal..a huge signal that the free money party is coming to an end…of course free money will last forever in Zombieland as the “whatever it takes” Super Mario strategy is proving absolute crap…no growth, now Germany starting to struggle and no solutions in sight..in a decade Europe will be a quaint old place that we go to visit from time to time…the great Euro experiment is going to consign them to a life of mediocrity…forever…at least the UK has been smart enough to stay out … place is going gangbusters..mainly because of the City but still shows what you can do if you have the keys to your very own printing press.
Once again though our market is stagnating…there is not much to like about the state of the Australian economy at the moment..that is apart from the great property game…more ridiculous prices paid by “investors” I mean really…anyway the great debate is when to buy the banks…they are 25-30% of our maket so where they go the ASX200 follows…I like the banks and think that investors should be sniffing around them at these levels…not all in but sniffing..my simple bank index is at 173 (just add them together) …topped out at 187 ish where I suggested upside limited and selling calls was a good way to go..well same applies now..top up with some stock and just sell some calls on the strong days…a sustained recovery is a way off but a range is the way to go…limited upside and limited downside..perfect for buy writes and covered call selling…
Expect a small rise today maybe…but still believe we will see 5200 in October. RIO and BHP may rally after the Glencore news…but probably won’t last…eyes on RBA at 2.30…language will be important..
Idea of the Day-Medibank Private
If you are interested in this government float..the best way at the moment is to pre register with the web site..click here…we hope to be able to offer clients stock but at this stage we have no more details so preregister with the web site and we can talk when I get more details..depending on the price and more details it should be ok…the Government will not want to upset punters with a loss and they will not want to be accused of giving it away either..think Aurizon…slow burn after as the management cuts costs..and improves effiency…Buy and hold..
October could prove another interesting month…
Things to make me go mmmmmm!!!
How is it that Glencore is talking about a merger with RIO to create the world’s biggest miner…really? BHP is now trying to break itself apart while Humpty is being put together…lots of lovely fees in it for the Investment bankers…then in four years’ time they will split it up again…
Seems the top story is once again The Batchelor….the imminent massacre of a Kurdish town, Kobane, by IS is not getting too much of a mention…the wonderful airstrikes will NOT solve the problem…you cannot destroy an ideology from the air…let’s face it the Luftwaffe couldn’t do it to Britain in the Blitz…it will take boots on the ground …big boots and lots of them…or we could actually give the Kurds some decent weapons to defend themselves against IS..rant over back to the Batchelor then…
Spanish Ebola victim…not quite so enthusiastic about my son going surfing in Morocco in November!!! Obama’s Ebola strategy is as good as the IS one.
Hewlett Packard announced it will split into two separate public companies…let’s have a guess about the name of them…suspect a branding company will get paid $20m to come up with Hewlett…Packard…
German factory orders slumped 5.7% in August after rising 4.9% in July.
RBA meets today..no change in the rate expected..lest face it they are only good for talking these days as it is the banks that control where the mortgage rates are…intense competition helping punters push up the property markets..the stamp duty man must be having a field day..at least that is one good thing…if governments were intent on slowing down this monster, there are some easy way to discourage people from speculating..more stamp duty perhaps…cap on how much a bank can lend…anyway wopnt happen as Pollies are big owners of investment properties..better than shares for them….
US reporting season is about to kick off…should prove interesting…big Apple supplier GTAT lodged for Chapter 11 …not all suppliers make a fortune it seems…Market Spruiker Jim Cramer was pushing these hard nota month ago!!!
Bitcon took a huge hit the other day..is the hype over….a week or so ago I went to a presentation from a bitcon miner…I thought I understood these babies..but after 30 minutes it was apparent that I had no idea really, my maths is not up to it…or it could be a complete fraud…I mean every four years the number of coins halves..who knew that?Well you do now…load of old rubbish if you ask me..
Construction software maker Aconex will become the latest in a surge of disruptive technology companies to list on the ASX, with an initial public offering to be completed the end of November valuing the Melbourne-based company at between $400 million and almost $700 million.
BHP Billiton is vowing to slash its costs of mining iron ore in the Pilbara by 25 per cent to below $US20 a tonne. Trying to compete with RIO as the lowest cost producer.more driverless trucks and trains….
ConocoPhillips and PetroChina have walked away from a shale exploration venture in Western Australia’s remote north-west, prompting local partner New Standard Energy to put the assets into a sale process…not a bullish sign for BRU Isuspect…
A Jewish man was leaving a convenience store with his espresso when he noticed a most unusual Italian funeral procession approaching the nearby cemetery. A
black hearse was followed by a second black hearse about 50 feet behind the first one. Behind the second hearse was a solitary Italian man walking a dog on a leash. Behind him, a short distance back, were about 200 men walking single file.
The man couldn’t stand the curiosity. He respectfully approached the Italian man walking the dog and said:”I am so sorry for your loss, and this may be a bad time to disturb
you, but I’ve never seen an Italian funeral like this.
Whose funeral is it?”
”What happened to her?”
“She yelled at me and my dog attacked and killed her.”
He inquired further, “But who is in the second hearse?”
The Italian man answered, “My mother-in-law. She was trying to
help my wife when the dog turned on her.”
A very poignant and touching moment of Jewish and Italian brotherhood
and silence passed between the two men.
The Jewish man then asked “Can I borrow the dog?”
The Italian man replied, “Get in line.”
And the thought for the day…..In the US you can buy a 3D printer than makes a gun…no serial numbers untraceable…the guy sold out of these machines in 36 hours…
Have a great day
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.