2:28 pm - Market Report by Bill Wermine

Dear Traders,

I was unable to post my market letter this weekend due to the main board and VGA Card of my computer failing. The technician said it was a due to a power surge. My mistake was not using a surge protector. Luckily it was a Fujitsu computer under warrenty and they fixed it on the spot at the Fujitsu service center

Another mistake was not realizing that power surges can happen in hotels or commercial buidings due to large central airconditioning units. Now I will carry a surge protector where ever I go.

Why are world markets in turmoil ? The main reason is the 2 powerful central banks the ECB and US Federal Reserve are moving interest rates in different directions.
This is causing meltdowns in global stock markets. The ECB is fighting inflation by raising rates while the US Fed is keeping rates low to insure growth. This is keeping oil, gold and grain prices high and the US Dollar in free fall. It is spreading hyper inflation and distruction of savings worldwide.

Sometimes a patient suffering from cancer must go through some unpleasant treatment such as chemotherpy in order to survive a severe illness. In todays marketplace, the Fed must administer some tough medicine in order to rescue the global economy from hyper inflation. and bring down energy prices. The Bank of Japan must join in with a half point rate hike to scare out the Yen carry traders. Will this scene play out- probably not. Bush, Bernenke and his insider chronies who control the US Federal Reserve want higher oil prices which make his friends and oil company CEOs even more rich. Bush killed thousands of Iraqis and destroyed Iraq. He also spilled the blood of thousands of Americans to enrich the arms merchants and oil companies.

The Bush agenda is for the rich at the expense of everyone else. Now he is committing economic terrorism in his remaining months in office again to benefit his super rich friends who were advised in secret government meetings to buy crude oil futures, grains and short the Dow Jones and S & P Futures.

How does this effect the KLSE ? Hold only the highest quality dividend shares in resource, food and plantation shares. Support is building at current levels as company insiders, funds and market professionals use the negative sentiment and weakness to buy quality at a bargain.

How do we protect ourselves. from the ravages of inflation- buy gold or Man Funds. (The Aussie Dollar denominated ones). May performance was 5.1 %

Below is a rare opportunity to understand current reasons why Man is well placed to profit from world market turbulance. Sam Gibson,an executive from Man will be there to share the reasons and answer your questions. Let me know if you wish to come- you may bring a friend as seats are limited. Let me know as we may have to turn away people due to the demand for seats You will get a 4 % sales charge rebate on their new Man launch. This is a rare bonus you would not get if you went to Man Investments directly in Singapore, Hong Kong, UK or Australia.


We will be organising an exclusive International Investment Talk on 9th July 2008 and 12 July . Mr Sam Gibson will share with us how alternative investment can help to enhance your total portfolio, while our CIO, Mr Ang Kok Heng, and our strategist Ms Crystal Teh will share about the Australian currency and economy and the analysis of Man Investment funds. Details of the talk are as below:

Date : 9th July 2008 (Wednesday)
Time : 7.00pm - 9.30pm
Venue : Hilton Petaling Jaya Hotel
No 2 Jalan Barat,
46200 Petaling Jaya. (See map attached)


Date 12th July (Saturday)
Time 10am 12 30pm
Venue Evergreen Laural Hotel
53 Persiaran Guerney
10250 Penang


Agenda for KL Talk, Penang talk is similar but starts at 10 AM.

7.00 pm Registration

7.30 pm Alternative Investment Opportunities Through Man Investment
by Mr Sam Gibson of MAN Investment

8.15 pm BREAK*

8.30 pm No Qualms on Aussie $ !
by Mr Ang Kok Heng, Chief Investment Officer of Phillip Capital Management Sdn Bhd

9.10 pm MAN Weathers Through The Storms
by Ms Crystal Teh, Strategist of Phillip Capital Management Sdn Bhd

9.45 pm Question and Answer Session

*Refreshments will be provided.

Have a good week
Bill
012 685 1207