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A good time to consider allocating to equities ?

A good time to consider allocating to equities ?

At Montgomery Investment Management we don’t claim any special ability to predict where equity markets will go next, but we do know that buying equities when they are relatively inexpensive is a reliable path to better than average long-term returns. One simple way of gauging relative value is to compare the dividend yield for the market as a whole with its historical average (although we don’t advocate valuing individual companies in this way). It’s worth noting that the current dividend yield on the ASX All Ordinaries is around 4.65%, vs an average of 3.84% for the last 20 years (Source: IRESS).

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Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.

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.

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