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Morning sports fans,

Well ,the Fed has removed the “Patient”, although now out of the ICU, the committee still feels that the Patient is not ready for the ward .To the extent that they have downgraded growth and interest rate forecasts going forward and seem to be wheeling the trolley towards the ‘out patients’ department at a glacial speed. This was conformation that the market wanted, that the party could go on for longer(well maybe September)…and celebrated in style..even poor old wallflower Oil got up to dance.The currency was absolutely smacked down after the announcement which will ensure that the US equity market pushes even higher..and of course that will ensure that all markets lift higher…should see us have another go at 6000 in the coming weeks…still nervous but happy to go along for the ride….usual suspects will lead the charge but resources will get a bit left behind…especially as our dollar is finding renewed vigour…

Aussie dollar hits 77.40…maybe this will help the RBA make up its mind for next meeting…certainly will hurt our economy if it continues higher..maybe its just short covering ..time will tell..more Jaw Boning to come?

Our market will hit 6000….we are only 150 away so by the end of next week we should be banging on the door..let me in!!!

Idea of the Day-IEU and other ETFS

Was on the Telly yesterday and got a caller asking about ETFs(Exchange traded funds).Now these little babies are designed to replicate the underlying index or basket of stocks and give investors to instant exposure to a country ,region or commodity..we talked about IEU which is a Euro Trash 350 bunch of stocks..beauty is it trades in US dollars so if you like the Zombie stocks for a rally you can buy this and if the AUD falls too you get a double whammy…there are a bunch out there for US markets Chinese,Gold, etc so it’s a great way to diversify your portfolio with ease …just remember though you have two bets if you like the markets going up and the AUD going down..DO NOT FORGET that they are mostly in USD…

 

Things to make me go mmm!!!

I know everyone is bullish the BHP separation and there are a number of investment banks and others reaping $732m reasons to be bullish..but Good BHP has two main weapns..fear and surprise..sorry got sidetracked there..Oil and Iron Ore…not sure if anyone is connecting the dots on these with eth share price but Iron Ore continues to plunge and Oil well we know the issues there…so maybe Bad BHP will be a better bet…you know what I get the feeling this is a lot of smoke and mirrors…$732m worth of smoke and mirrors but hey it worked for AMC and others..but I reckon the overseas boys will be sellers of the South 32 when it comes on and it will be prudent to wait and see how it settles..no rush..crikey there is no sign of a pick up in commodity prices after all!!!

I actually listened to Yellen (not screamin) this morning on the ABC..usually I just read her tea leafs but was worried that she is starting to sound more and more like Stephen Hawking….

*FED DROPS PATIENT STANCE ON INTEREST-RATE RISE GUIDANCE (hawk)

*FED SAYS ECONOMY `HAS MODERATED SOMEWHAT,’ JOB MARKET IMPROVED (dove)

*FED SEES 2015 GDP GROWTH OF 2.3%-2.7% VS 2.6%-3% DEC. EST. (dove)

*FED WANTS TO BE `REASONABLY CONFIDENT’ ON INFLATION FOR LIFTOFF (hawk

Bernanke, 60, does not expect the federal funds rate, the Fed’s main benchmark interest rate, to rise back to its long-term average of around 4 percent in his lifetime.

Looks like Free Money is going to be around for longer…Looks like we have skipped through the Ides of March…the budget is looming now as a major moment..this years ..not last as that is just barnacles!!Maybe they will set a budget that actually helps get the confidence and the economy back on track ‘cos apart from finance and housing it looks pretty flat…

FMG pulling their $2.5bn issue not a good look..bears will be dancing in the streets…

bears

Currency wars anyone?…

currency wars

Last UK budget last night before the election…Chancellor Osborne said “the sun is starting to shine” on Britain, as he announced a series of pre-election perks.

The top policy announcements included a £1,000 tax-free allowance on savings interest, and a new ISA that will help first-time buyers get on the property ladder.

He also announced another increase in the personal tax allowance and duty cuts for alcohol. But more importantly he used the windfall of the sales of bank shares to pay down National Debt!He also slapped a levy on the banks..god help us if it catches on here!!!Most things from the Abbutt thought bubble come from overseas so I am sure Sloppy Joe will have a look at this measure!!!

Certainly seems that every man and his dog in the LIC universe is raising money at the moment with Whitefield joining the fun with a cash grab.

Good news from Novogen…Shares in the cancer treatment developer have soared after it announced that one of its drugs could help destroy a cancer cell’s “skeleton”. Novogen says the development of its anti-cancer drug Anisina has reached a major milestone.Even SRX made a great recovery yesterday..now for OSL perhaps!!!

Not sure whether this is good or not but Justin Hemmes continues his monopoly of Sydney’s drinking scene with the family purchase for $50m of the Newport Arms..my local…$50m for the beer garden..crikey..guess that’s the end of $5 Pizza night…and the beer was already expensive so god knows what it will be when he gets in there…still glamour comes to the beaches and he is a quality operator..just hope us locals can still afford to go there..and the ping pong will definitely be out!!!!

And finally….

Siamese twins walk into a bar in Australia and park themselves on a bar stool.

One of them says to the bartender, “Don’t mind us; we’re joined at the hip. I’m John, he’s Jim. Two Fosters beers, draft please.”

The bartender, feeling slightly awkward, tries to make polite conversation while pouring the beers. “Been on holiday yet, lads?”

“Off to America next month,” says John. “We go to America every year, rent a car and drive for miles. Don’t we, Jim?” Jim agrees.

“Ah, America!” says the bartender. “Wonderful country… New York, L.A, Vegas…”

“Nah, we don’t like that American crap,” says John. “Meat pies and Fosters beer, that’s us, eh Jim ? And we can’t stand the Yanks – they’re so arrogant and rude.”

“So why keep going to America?” asks the bartender.

“It’s the only chance Jim gets to drive.”

Have a great Thursday

Clarence

XXXXX

everything is awesopmeGet a Global take on things at www.ntmarkets.com

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