Tags

, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Morning sports fans,

 

A message from our sponsor ..Ron Burgundy…

 ron

Well that escalated quickly..really quickly…seemed like only yesterday I was worried about the markets and mentioned that Greece could become a problem again..crikey it was yesterday!!!..and so it came to pass..they have called elections and with the Anti-Zombie party leading in the polls, this is a high risk strategy…equity market fell 13%..most ever..Happy Xmas..or as they say ευτυχισμένος Χριστούγεννα….meanwhile on another planet altogether the Chinese government has clamped down on stock market speculators…result the market fell 5.8%…having sucked in all the retail punters as they open accounts faster than a CFD provider on steroids ,they stick it to them…good stuff…of course in the US they just sailed through as they seem to have the only economy going ok at the moment..at the moment that is…ran through the bear case yesterday and remain somewhat concerned that Santa’s sleigh despite running on cheaper petrol this year is sitting on blocks with a couple of punctures as the hot air leaks out…in all this turmoil gold blasted ahead so expect a good day from the gold stocks today and maybe some bargain hunting in energy stocks and even BHP, which hit a five year low yesterday…how’s that investment in US oil and shale looking now?…still at least they can group it in with South32(dumbest name ever) and float it off into the wild blue yonder…

Yesterday’s rout in energy stocks fed through to the rest of the market..today we may try to be slightly less skittish but the banks are under attack…the big four make up 50% of our market..now I know that they rallied after the Murray report..but I reckon that may be short lived and we may see them struggle to push substantially higher..SPI was up 4…guess it liked oil and gold prices but Iron Ore dipped below 70 bucks …

I believe that we will see continued underperfomance of our market…there is nothing to get excited about really…the switch from mining to something else is never going to happen under the present settings..lack of vision and the obsession with dividends and yield is just driving us towards a recession..the dollar will  be sub 80 by Xmas..doesn’t seem a very brave call at the moment but still…

Idea of the Day

 

Now I have harped on about this stock before and its one I am close to..Mortgage Choice…the stock has had a bumpy ride in the last few weeks with news of the much respected CEO Michael Russell leaving..and of course the consequences for mortgage brokers of the Murray Enquiry and the headmasters grilling on lack lending practices…so result..whacked..now they are starting to look increasingly interesting…at around $2.20 they have a potential yield as long as they continue to pay the dividend of 7% fully franked…try getting that anywhere else..I am a fan..and would be accumulating on the back foot..huge loan book and pushing into financial planning which is going well…banks need brokers to compete and the property market will continue to be the best industry in Australia!!!

 

I think the short term weakness is overdone…hopefully!!!!!

Things to make me go mmmmmm!!!

 

It seems that the big global pool of capital is going back home for Xmas..Uncle Sam is dragging the money back quicker than the Chinese are opening new margin accounts!!The story of 2015 will be higher US rates..higher US dollar and the ramifications for US exports plus the oil unravelling…

The CIA!!!I mean really how can the US be a shining light and a model for the world to look to, and condemn the terrorists, when they are doing the sort of things these guys were doing…not sure what I was more shocked about the massive fail in getting any decent info after these gruesome tortures or the fact they paid two blokes who ran the company advising on the means to rectally feed prisoners, $80m!!!!

And Obama’s reaction…. “Today is also a reminder that upholding the values we profess doesn’t make us weaker, it makes us stronger and that the United States of America will remain the greatest force for freedom and human dignity that the world has ever known.” And then he did stand up on the Stephen Colbert Show..classy Mr President..classy…

 

Banks get summoned into talk to the headmaster about their lending practices…two things spring to mind..Horse …bolted…

'Just a minute!'

The Australian Prudential Regulation Authority contacted the nation’s banks on Tuesday to tell them of new speed limits that would prevent them from aggressively pursuing investment property borrowers….

 

In China the gov has clamped down on stock speculators…“Turnover, leverage and account openings have all soared and there is a sense of mania taking hold”…well the government showed them didn’t they!! Margin debt has risen to more than $130bn from nothing three years ago….would never have got past the senate here..In China it just happens…

The NAB now sees two cuts in 2015, in March and August and they have revised down 2015 GDP to 2.5% from 2.9%.

One in three purchases of clothing, furniture and appliances now takes place online, after a boost from last month’s Black Friday, according to new research.The British Retail Consortium says the growing popularity of “click and collect” services has moved many more people online.

Good to see Tony Abbott and his health minister yesterday …not sure which one looked more uncomfortable …hasn’t Tony aged in the last year!!!Looks shocking….and he is certainly doing his bit for austerity as he is still wearing the same tie!!Yet another backflip with pike and then the twist at the end as sneaky Tony goes round the back door…

Mortgage giants Fannie Mae and Freddie Mac have now officially approved 3% down payment mortgages….wait…what….not again!!!

The WSJ ran a story suggesting the FOMC suggesting the Federal Reserve was close to dropping  the phrase ‘Considerable’ from the timing…

Tesco in the UK had just time to issue one more profit warning before Xmas..bless 11 year low…they were opening the advent calendar and found another problem on the 9th..no chololate just a hole!!!

advent

Uber, capped at a ridiculous $40bn, requires drivers in India to submit a character certificate endorsed by police. This can be obtained for a bribe regardless of qualifications, according to drivers for the company. They just need to pay $130 for the all clear..I think Uber is massively overvalued but that’s just me..smarter guys making billions are investing in this thing…much like Enron really..

And finally….

 

A man who’d just died is delivered to a local mortuary wearing an expensive, expertly tailored black suit.

 

The female blonde mortician asks the deceased’s wife how she would like the body dressed.

She points out that the man does look good in the black suit he is already wearing.

 

The widow, however, says that she always thought her husband looked his best in blue, and that she wants him in a blue suit. She gives the Blonde mortician a blank check and says, ‘I don’t care what it costs, but please have my husband in a blue suit for the viewing.’

 

The woman returns the next day for the wake. To her delight, she finds her husband dressed in a gorgeous blue suit with a subtle chalk stripe; the suit fits him perfectly…

 

She says to the mortician, ‘Whatever this cost, I’m very satisfied.. You did an excellent job and I’m very grateful.. How much did you spend?’

To her astonishment, the blonde mortician presents her with the blank check.

 

‘There’s no charge,’ she says.

 

‘No, really, I must compensate you for the cost of that exquisite blue suit!’ she says.

 

‘Honestly, ma’am,’ the blonde says, ‘it cost nothing. You see, a deceased gentleman of about your husband’s size was brought in shortly after you left yesterday, and he was wearing an attractive blue suit. I asked his wife if she minded him going to his grave wearing a black suit instead, and she said it made no difference as long as he looked nice.’

 

‘So I just switched the heads.’

 says it all

 

Sums it all up…thanks www.zerohedge.com

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

Advertisements