I joined Paul Turton on ABC Newcastle Mornings to discuss recent movements in U.S. markets, which have edged higher, and the ongoing uncertainty around when the war might end. We also explored the potential implications for Australia, noting that local markets often take their lead from the U.S. and are therefore likely to remain cautious. Unless there is a significant escalation – such as a more aggressive move by Trump against Iran – markets are expected to drift sideways in the near term.

Listen to the segment from 37:00 here: ABC Newcastle Mornings

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On ABC Statewide Drive, I discussed why geopolitical shocks have historically caused short-term market volatility rather than lasting weakness, with many conflicts followed by relatively swift recoveries and resilient equity returns. I also noted that while the current Middle East conflict is unlikely to become a world war, investors still need to watch the broader risks beyond the headlines, including elevated valuations, persistent inflation, higher oil prices, rising U.S. debt and the unpredictability of Donald Trump, all of which could make 2026 a more volatile and consolidating year for markets.

Tune into the segment from 1:44:38 here: ABC Statewide Drive – conflict and markets

Continue…

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I know everyone is focused on Iran and oil at the moment, but when the conflict eventually ends, investors will cheer…and return to the themes that previously dominated markets.

And that theme is artificial intelligence (AI).

At Montgomery, we have always preached that, in the long run, share prices follow a simple trajectory: the present value of future cash flows or the ‘intrinsic value’ of a stock. We have long advocated investors look for “great” businesses with high returns on incremental invested capital and durable competitive advantages.

From time to time, however, the market enters a period of “narrative-driven” exuberance where the arithmetic is ignored in favour of a grand story. A theme. Continue…

by Roger Montgomery Posted in Market commentary, Market Valuation, Technology & Telecommunications.

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I joined Andrew Geoghegan on Ausbiz to discuss why geopolitical shocks often coincide with resilient equity markets. History shows that while wars and major conflicts can trigger sharp initial sell-offs, markets have often recovered quickly and, in some cases, delivered strong returns during those periods. During World War I, for example, U.S. equities initially fell by around 30 per cent before going on to generate average annual gains of close to 7 per cent between 1915 and 1918, including a particularly strong rebound in 1915. World War II also aligned with solid Dow Jones returns, depending on the start and end dates used. And according to data from LPL Financial on 22 major non-financial shocks since Pearl Harbor, markets have typically fallen by around 5 per cent before recovering fully within about six weeks. Continue…

by Roger Montgomery Posted in Global markets, Insightful Insights, Market commentary, Market Valuation, TV Appearances.

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Pivots galore

Few global macroeconomists have carried as much recent optimism as Ed Yardeni, who, as president of Yardeni Research, has spent the better part of this decade championing a ‘Roaring 2020s’ thesis – a nod to the roaring 1920s, on the back of productivity gains, technological innovation, and a resilient American consumer, Yardeni’s thesis has included a very bullish end to 2026.

In an interview with Thoughtful Money, however, Yardeni pivoted. While not abandoning his longer-term bullish base case entirely, the war in the Middle East, seems to have influenced a bit of a capitulation. He has also increased his probability of a recession from 20 per cent to 35 per cent, on the back of geopolitical volatility and the return of ‘bond market vigilantes’ – the latter being a term Yardeni famously coined in the 1980s to describe investors who protest inflationary fiscal policy by selling bonds. Continue…

by Roger Montgomery Posted in Economics, Global markets, Market commentary.

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Prior to the conflict, investors were debating AI’s immediate and long-term impact. While 2025 was about the rise of the AI “picks and shovels” – enablers like Nvidia – 2026 witnessed the emergence of agentic AI, and the narrative quickly became about the fall of the middlemen – the traditional software companies that built epochal and capital-light business on a per-seat revenue model.

This article was first published in The Australian on 25 March 2026. Continue…

by Roger Montgomery Posted in Economics, Global markets, In the Press, Investing Education, Market commentary, Market Valuation, Technology & Telecommunications.

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The question on the back of every analyst’s mind is when will the war end. Sure they’re promoting their key picks and hosting company briefings but there’s a cloud hanging over them and which they’re unable to escape. For those analysts confronting the conflict head-on will be looking for any signal in the noise. That requires moving past the usual diplomatic cables and TV talking heads and looking at unconventional sources of data where there’s skin in the game and exposure to the operational realities. Continue…

by Roger Montgomery Posted in Global markets, Market commentary.

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While Israel pursues a high-stakes military campaign and President Trump plays ‘Deal or No Deal” with an Iranian regime that might not even have a leader in charge, investors are doing the only sensible thing left: Hiding.

With the Islamic Revolutionary Guard Corps (IRGC)’s ‘asymmetric’ threat to the Strait of Hormuz continuing and the U.S. increasing its on-the-ground footprint as America’s 31st Marine Expeditionary Unit arrives in the Middle East, the risk of a recession has also risen. Continue…

by Roger Montgomery Posted in Companies, Global markets, Insightful Insights, Investing Education, Market commentary.

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