The Good Morning Report – 2nd of July

1. Private credit funds are booming in Australia as baby boomers chase income without thinking about the consequences…..These funds borrow money off investors and lend it to business’ and property developers (at rates well above 10%) that can’t secure market rates from the banks.

2. I’m predicting we’ll see some serious blowups with these private credit funds – sure everything is hunky dory right now and the income payments are flowing, but when the credit crunch hits the good times will end in a heart beat and investor funds will be frozen. This time WON’T be any different. BUYER BEWARE! AVOID

3. All the ETFs on the ASX that had income to distribute went ex-dividend yesterday….URNM for example fell 42c or 4.43% but 18c was a dividend payment so the stock was only down 2.5% in real terms.

4. Corelogic reported that house values rose 8% across Australia or an average of $59,000.

5. Lend Lease (LLC) sold it’s US Military Housing business for $US320 mil. The CEO, ‘Fat’ Tony Lombardo gave himself a big pat on the back after liquidating the fine asset……LLC rallied just 4% on the news.

ASX 200 down 16 points to 7750

COAL miners closed comfortably in the green on news of an explosion at one of Anglo’s mega hard coking coal mines in Queensland. Fortunately no one was injured (what a miracle!)….Our miners rallied because the price of coking coal should rise due to this decent supply disruption that may last quite a while. WHC increased 6.27%, CRN put on 8.86% and SMR added 5.08%.

What a shambles….Macquarie has put Calidus (CAI) into administration after stitching them up with a ridiculous lending package that involved forward selling GOLD from it’s mine at A$2370oz only to see mining costs rise above that to A$2429oz, all while the gold price surged to A$3489.

CAI should serve as yet another cautionary tale for up and coming mining executives when dealing with the banksters – beware the flashy suits and fast talk about derivative markets.

*Fortunately none of us have any shares in it.

  • ASX futures down 11 points
  • Bitcoin up 3.4% to $63,741
  • BHP in US up 1.1%
  • Newmont in US down 0.3%
  • URNM in the US up 0.93%

Movements affecting our resource stocks today (USD)

  • Gold FLAT @ 2340
  • Paper Silver up 0.44% to $29.69
  • Platinum down 2.38% to $990
  • Palladium down 0.25% to $970
  • Copper up 0.51% to $4.40
  • Brent Crude up 2.16% to $86.83
  • Iron ore up 3.2% to $109.80

Japan up 0.12%, Hong Kong SHUT, China up 0.92%

How long can CHINA keep securing cheap SILVER that goes into these SOLAR panels?……SOLAR BOOM = SILVER BOOM

DOW up 50 points to 39,169

Keith Gill aka Roaring Kitty (dude who made a fortune in Gamestop), just became a substantial shareholder in CHEWY which is an online pet products retailer. He bought 9 million shares which is currently worth around US$225 mil….Initially CHEWY shares surged but the stock closed 6.61% lower.

The financial press were celebrating as German inflation fell to 2.5% from 2.8%….Meanwhile – China to Europe freight index (cost to ship goods) hit another fresh record high which is going to add inflationary pressures.

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July 9, 2024.
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