I should stop day dreaming as I am only half way to my savings goal for the next one and in full swing of setting up the new business. Which got me thinking, what will the consequence be for your next holiday?

I would always endorse a good fun packed holiday. But fun aside the reality is this has to be paid for somehow.

Here is my challenge to you, have a great holiday with priceless moments but not sponsored by Mastercard. You want the memory of your holiday to be the pictures, the places and the people. Not the monthly reminder that the holiday is over but Mastercard and your banks shareholders are still enjoying the benefits of your interest repayments.

So back to the fun of planning that next holiday. My advice. Set your goal. Work out what you need to put aside to fund it. Pay yourself first, and spend less than you earn. Sounds simple doesn't it! But again reality can be different.

Above all enjoy that holiday when it happens, knowing that when you come back the memories will remain and you will avoid that unwanted holiday debt hangover.

If you don't want to do the cash flow planning for it alone, or get stuck in the process, pick up the phone and call me.

Myer ticks some of the boxes with this float, good brand name and solid expectations for earning growth. The final listing amount on the float is not yet public but is expected between $3.90 and $4.90 per share, at the lower end this represents a good opportunity to investors.

Size of offer: $1.94-2.34b

Offer to: All Australian and New Zealand retail and sophisticated investors

Indicative price: $3.90 - $4.90. Note we will be bidding at Final Price which will be set after the conclusion of the institutional offer at the end of October. The price may be set above or below the range.

Minimum application: $2,000

Settlement date: TBA

Trading date: Melbourne Cup Day (2nd November)

So what should you look for in an IPO. The same rules apply for IPO's as for other share purchases.

What is the business? where do they make their money and is their income from a good mix of sources? With regards to Myer you are banking on people spending money in the retail sector. They have a number of income sources being a department store however they are more discretionary spending rather than being necessity items.

Check the expected earnings of the company and know what is in it for you. A company with good earnings growth means they have the opportunity to grow their business and their profits to give something to share holders.

Understand how the income you will be paid. Check out the expected dividends and the policy the company will have on paying dividends if this will be taxed or partially franked.

How much is the float going to cost? This is an important aspect as Myer was purchased from the share market in 2006 by a private equity group and they are now selling it back to the market for a nice profit. The private equity group will be sure they make money from the transaction so if the float comes to market at the higher level that is more time that investors will have to wait to start making money.

As with all investment opportunities don't get caught up in the glitz and make sure that it is a good underlying investment.

I have some access to firm stock, this means that you will be guaranteed an allocation of stock in the float so if you are interested in buying into this Aussie brand please contact me to discuss whether it suits your portfolio needs.

Last month
;

Indices	Closing level	Opening Level	Gain / Loss
All Ords	4739	4484	5.69%

Last 12 months

Indices	Closing level	Opening Level	Gain / Loss
All Ords	4739	4631	2.33%

Last 26 months

Indices	Closing level	Opening Level	Gain / Loss
All Ords	4739	6187	-23.4%

Strong economic data and positive earnings momentum following the strong August reporting season helped push equity markets higher for the seventh consecutive month. The Australian equity market (S&P/ASX200 Accum Index) performed strongly again in September, gaining 6.24% over the month and 54.8% from its low. The MPB Core Portfolio moved in line with this at 6.17% with significant contributions from the likes of CBA up 12.5%, WDC up 9.8% and TOL up 7%.

The Australian housing sector continued to benefit from low mortgage rates and the boost to the first home owners grant, which began to roll off on 30 September. Private sector building approvals rose by 3.1% and house prices increased by 1.9% in August and are 7.9% higher over 2009. This highlights the shortage of supply and strong demand for housing. However, we would remove any exposure to local residential construction at this point in time, with the multiples in this sector fully reflecting earnings growth expected in the coming three years.

Consumer confidence is now exceedingly strong, rising to a level of 119.3, the highest level since July 2007. In contrast, retail sales data was mixed, falling by 1% in July and rising by 0.9% in August as the positive impact of Federal government stimulus packages roll off. Despite this being expected to remain the case, we are not increasing our exposure to the Consumer Discretionary Index.

The OECD+6 Leading Indicator (LI) has risen in line with its previous 1975 high (+15% 6m annualised growth) as the inventory cycle is driving demand through aggressive restocking. While China is a major driver of the OECD+6 LI, the developed country OECD LI (+9.3%) is at its highest level since 1983, highlighting the improvement in the US and Europe. The Australian equity market outperformed the rest of the world (+3.0%), as the Australian consumer discretionary (+10.6%) and financials (+9.9%) sectors outperformed global peers (+2.8% and 2.1% respectively). OECD+6 Leading Indicator has risen at the rate of the mid 70s, driven by China, which has risen by 34.2% on a six month annualised basis. We believe this data, most significantly improved by China's rising contribution, justifies our decision to leave the Resources exposure we have unchanged.

As discussed previously a major reversal is now commencing in the inventory cycle, which will lift manufacturing production significantly over the coming months. With encouraging leading indicators working to drive up risk appetite, the prospects for economic recovery are further improving and this is working in turn to push down risk premiums and give the outlook increasing support. The strong US reporting season has been characterised by underestimated operating margins, which has led to most companies exceeding analyst forecasts. Australian investors must now focus on the underlying operating margin assumptions underpinning the FY10 and FY11 EPSg forecasts. This focus is no longer for the downside risks posed by operative leverage. Rather, investors need to assess whether the current EPSg forecasts in FY10 (for some stocks) and FY11 are factoring in sufficient operating margin recovery. As the recovery progresses, margin forecasts will be upgraded, resulting in a very large impact to earnings.

The market is likely to see considerable upgrades to forecasts running out as far as FY12, as even small changes to operating margins, via operating leverage, will produce disproportionately large increases to NPAT across the board. It is at this point, however, that we depart from consensus. The positive influences on the market we think will be:
1. The entire world is relying on the usual multiplier effect from fiscal stimulus to continue to be shown;
2. OECD & Chinese data are supportive of the case for the Resources sector and the inventory cycle argument;
3. Rising interest rates are a positive signal for banks' earnings for the year following the beginning of the tightening cycle;
4. Margin expansion appears to be the reason across the world for rising EPS forecasts.

Regarding points 2. & 3., we are leaving untouched our exposure to Banks & Resources this month. These sectors together comprise the biggest part of the market. We have an overweight exposure to both sectors and there we will remain until further notice. Banks in particular have been performing well as they historically do when interest rates begin to rise. We remain relatively cautious as the market continues to run on towards 5000 and as such continue our balanced approach with exposures in WOW, TTS, or QBE. These are perceived to be too defensive in nature to participate in the current inventory related rally however have held up well and retain an integral part of our portfolios if any of this cyclical money turns back to defensive investment.

Finally, Gold has enjoyed a fantastic run over the past month with gold equities such as Lihir and Newcrest moving along quite nicely. The weak USD and subsequent talk of Chinese interest in IMF gold holdings has ignited the precious metal and we maintain our strong conviction to gold exposure in some form.

If you have not recently reviewed your product strategy and would like to review the investments you have in place please contact the team at Money Mechanics today 1300 772 643.

Managing on a Low Income
Wednesday 23rd September at REID CIT Campus
Cost $25
Struggling to make ends meet? Sometimes it can be hard to imagine getting ahead, let alone really getting there. Living on a low income can take a lot of energy and require a lot of skill balancing your budget from day to day. Our habits and attitudes have a lot to do with how we relate to our money and making ends meet. You may or may not already have good money management strategies in place. This course is one of the first simple steps to making the most of your money, from getting a greater grasp on your day to day budget and debt strategies, to your longer term superannuation strategies.

Superannuation Demystified
Look out for 2010's Program at REID CIT Campus
Cost $50
This evening will cover the taxation strategy of superannuation including the taxation on contributions while in the scheme, and on the way out of the scheme. Technical strategies such as advantages and disadvantages of salary sacrifice to superannutaion and defined benefit superannuation schemes in the context of your financial life and estate plans will be covered.