A Buying Stampede

June 11th, 2010  by Bryden Elssmann

Closing Data

	Current	Change	%
Dow Jones	10,172.53	273.28	2.8%
NASDAQ	2,218.71	59.86	2.8%
S P 500	1,086.84	31.15	3.0%
FTSE 100	5,132.50	46.64	0.9%
Nikkei 225	9,542.65	103.52	1.1%
ASX 200	4,435.30	50	1.1%
COMEX Gold - Dec 09	1,222.20	-7.7	-0.6%
COMEX Silver - Sep 09	18.351	0.162	0.9%
COMEX Copper - Sep 09	286.25	1.25	0.4%
WTI Spot	75.48	1.1	1.5%
AUD-USD	0.85	0.0219	2.7%
Aluminium	1,911.00	60.5	3.3%
Copper	6,295.50	204.5	3.4%
Lead	1,655.00	92.5	5.9%
Nickel	18,780.00	825	4.6%
Tin	16,395.00	565	3.6%
Zinc	1,738.50	115.5	7.1%

A Buying Stampede

A strong rally in US stocks has lifted the Dow above 10,000 after upbeat comments from the European Central Bank and strong economic data in the US, China and Australia. The Euro strengthened against the US dollar after the European Central Bank lifted its growth forecast for this year, helping to push up interest in riskier small-cap stocks and energy stocks. Basically, any sector exposed to global demand prospects gained.

Crude oil posted a third straight gain. Traders’ demand was boosted by the decline in US jobless claims, an increase in the Energy Information Administration forecast of global oil demand for 2010, and data showing strong oil imports by China in May.  Oil futures gained 1.5 percent to settle at $US75.48, however traders cautioned the rally could run out of momentum as the commodity approaches $US80 a barrel.

Gold lost its shine as investors unwound safety bets and rode the wave of buying on global equity markets. The commodity fell $US7.70 an ounce or .65% to $US1222 an ounce for August contracts.

The Australia dollar also strengthened against the Greenback, up 1.5% to close above US85cents. The strong gains on Wall Street, coupled with a stronger Aussie dollar and higher commodity prices will likely send the local bourse higher. The SPI futures are trading up 68 points or 1.5% to 4501.

I caution that any rally on our market may be tempered as investors take risk off the table ahead of the long weekend, given the market has been dominated by geopolitical events largely taking place overseas.

BRYDEN ELSSMANN

 

Berkshire Hathaway

Let me ask you a question...

If the world’s greatest investor, Warren Buffett, one of the richest men in the world, with an unblemished record of performance over 45 years, bumped into you on the street and you got to chatting...

And he mentioned that he was a few thousand short on a multi-billion dollar deal and asked you if you’d like to “chip in” would you?
Would you take the opportunity to partner with him in this deal?

If your answer was “yes” then you’d be like most people but in fact most people never take action even though they can “partner” with Buffett through buying shares in his investment company Berkshire Hathaway, even though it has grown at an annual average rate of 20.3% over the last 45 years.

And what if you could get the same exposure for 20c in the dollar? 

Well they are the questions we asked and Deutsche Bank answered when they created for us their “Growth Plus – Berkshire Hathaway Inc” investment. 

Respected commentator Tony Rumble described it as “a simple and attractive investment” and gave it 4 stars (out of 5).  Read the full article here http://www.freemanfox.com.au/news/view/investment-road-test-db-accessberkshire-hathaway

Berkshire Hathaway is perhaps uniquely positioned to take advantage of the predicted long slow recovery of the US economy because in the past Buffett has shown he can out-perform in these volatile times.   With hundreds of millions in cash flowing in every month and over 70 different businesses in their portfolio they can act quickly to allocate capital to areas where it will get maximum benefit. 

This investment is quite clever in the way it is constructed...
•       $1 buys approximately $5 invested
•       No loan
•       No interest payments
•       No ongoing fees or charges out of your pocket
•       Volatility managed
•       3 year term

Basically you are betting (and I don’t use that word lightly – this is a high risk investment) that Berkshire Hathaway’s B class shares will have risen by at least 20.75% in 3 years time. 
You can invest from as little as $10,000.
If you like to know more or would like a copy of the PDS, please click here: http://www.freemanfox.com.au/investments/growth-plus-berkshire-hathaway

PETER SPANN

Important Information

Peter Spann is a representative of Freeman Fox Ltd ABN 17 010 763 041, the holder of an Australian Financial Services licence (AFSLN 246510).

The Growth Plus: Berkshire Hathaway Inc Certificates have been offered by Deutsche Managed Investments Limited ABN 55 118 336 584 and application is subject to approval.  An invitation to apply for this investment is made in the Product Disclosure Statement (PDS). Deutsche Managed Investments Limited holds Australian Financial Services Licence number 330531. The PDS are available upon request by calling 1800 000 369 or at www.freemanfox.com.au.

The past performance data has been included in this email.  Future market conditions may not be the same.  Past performance is not a reliable guide to future performance. Actual performance will be different and returns are not guaranteed. While information in this email is given in good faith and is believed to be reliable and accurate, Freeman Fox Ltd gives no warranty as to the reliability of accuracy of the information, nor accepts responsibility for any errors or omissions of third parties.

 

 

Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.

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