3 BIG topics in one quick Monday Report 1 Medibank lists tomorrow The government has had a bonanza with Medibank, issuing the stock to retail at $2 a share and institutions at $2.15 a share. At what price do we sell Medibank? 2 China cuts interest rates for first time in 2-years Simply, China has had enough of slowing growth and worsening economic data. The largest beneficiary of this action/direction is the embattled resources sector. BHP looks set for a $3.80 rally(12%) from Friday's close. 3 ECB President says he will do whatever is necessary to raise inflation in Europe Basically this means more stimulus and lower rates for longer in Europe, nothing that new. I have two on going conclusions from this aggressive news: 1. Gold will have a great few months; I am a buyer Regis Resources (RRL) targeting a further 25-30% upside from current levels (see chart 3). 2. I believe yield stocks e.g. banks will be solidly supported in Christmas, but I am looking for areas to sell not buy. (VIEW LINK)
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