Three reasons why I am still bullish on this market
Over the past 12 months, the All Ordinaries index and the S&P 500 have risen around 26 and 35 per cent, respectively. Not bad when you consider the economic ravages of the COVID-19 lockdowns. But despite these strong performances, there are three good reasons to believe sharemarkets will continue to climb over the coming year.
A number of investors have asked us whether now is a good time to add to investments or start a new portfolio for family members. My usual answer is that we simply don’t know what share prices will do day-to-day. Given a reasonable strategy is to spread investments out over a period of time, taking advantage of any weakness in prices that might ensue. Of course, the risk with such a strategy is that investors miss out when uninvested if markets rise.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Grant Terry
:
Roger, I am a long term investor and listen to your insights a lot. I get you since i started listening to you at an ASX course years ago, but you were a big bear at the time on most things especially when challenging existing conditions.
Can you deny please my concern your bias has changed – to make money from the rising market? Your a fundamental guy and key stocks are overvalued? seriously or are they not?
What are you thinking really? I am worried you lost your skepticism as the big bear of sensibleness.
GT
Roger Montgomery
:
We definitely change our views when the data and the outlook call for it Grant.