Economics

The U.S. is a flawed country, but many believe, as the New York Times’s David Brooks noted, is fundamentally a force for good. Citing the Marshall Plan, the defeat of fascism, and the defeat of the Soviet Union, as examples, and acknowledging Iraq and Vietnam, as mistakes of stupidity, naïveté and arrogance, Brooks believes the U.S. has always been well-intentioned. continue…

by Roger Montgomery Posted in Economics.

• 1 Comments
• save this article
• POSTED IN Economics

In this week’s video insight, I delve into the recent interest rate cut by the Reserve Bank of Australia (RBA) and what it means for self-funded retirees relying on cash and term deposits. With lower rates affecting returns, I explore the broader implications for retirement income and discuss private credit as one potential alternative to help navigate this changing landscape.

continue…

by Roger Montgomery Posted in Aura Group, Economics, Video Insights.

• save this article
• POSTED IN Aura Group, Economics, Video Insights

This week, I joined David Taylor on ABC PM to discuss the Reserve Bank of Australia’s latest rate cut and why bank customers should take action. Many of us are effectively lending money to banks for free, and inertia prevents us from seeking better returns. With no guarantee of further cuts, now is the time to shop around and make our cash work harder. continue…

by Roger Montgomery Posted in Economics, Radio.

• save this article
• POSTED IN Economics, Radio

Last year, the stars were aligned for gains in equities. In 2023, we alerted investors to three key ingredients pointing in the right direction for 2024. Disinflation, positive economic growth and a massive injection of liquidity all helped investors feel confident about piling into the AI thematic, which drove equity indices to new all-time records. continue…

by Roger Montgomery Posted in Economics.

• save this article
• POSTED IN Economics

Liquidity is a concept critical to understanding investment markets.

Back in mid to late 2022, we wrote several posts on our blog and articles in The Australian, compelling investors to consider and pay attention to the very low price-to-earnings (P/E) ratios at which equities were trading. continue…

by Roger Montgomery Posted in Economics, Market commentary.

• save this article
• POSTED IN Economics, Market commentary

One of the biggest challenges for investors and market watchers – especially those with a shorter-term bias – is deciphering Federal Reserve (Fed) policy. Typically, they rely on headlines, media soundbites, and second-hand analyses. But every so often, it pays to look directly at what the Fed is actually saying. Below is a recap of Federal Reserve Chair Jerome Powell’s most recent press conference – highlighting key quotes from Powell himself – so you can form your own views on where monetary policy and the economy might be headed. continue…

by Roger Montgomery Posted in Economics.

• save this article
• POSTED IN Economics

First, it was DeepSeek, and now it’s tariffs. Investors will need to endure more volatility, while those hoping for cheaper prices to enter the market might have their wish granted this week.

You might not think Trump’s imposition of tariffs on imports from Mexico, Canada and China has anything to do with your Australian equity portfolio but think again. The next few days could see markets move materially. continue…

by Roger Montgomery Posted in Economics, Market commentary.

• 2 Comments
• save this article
• POSTED IN Economics, Market commentary

Why do we have a housing crisis? We’re told it’s because there isn’t enough housing, so the price to purchase or rent is too high for young people. There’s no denying the truth of those two answers. One might, however, choose to dig a little deeper: Why do we not have enough houses in Australia, and why are prices so high? continue…

by Roger Montgomery Posted in Economics, Editor's Pick.

• 22 Comments
• save this article
• POSTED IN Economics, Editor's Pick

The U.S. recorded its 23rd consecutive federal deficit in the year to September 2024 at US$1.83 trillion, around 6.5 per cent of gross domestic product (GDP). For October and November 2024, the federal budget deficit hit US$622 billion, up US$242 billion or 64 per cent year-on-year. Admittedly, some of the jump was related to timing differences. continue…

by David Buckland Posted in Economics.

• save this article
• POSTED IN Economics

This article was first published in The Australian on 30 March 2013.

Back in 2013, Wesfarmers (ASX:WES) chairman and head of a business council panel on the decline of value-adding and manufacturing in Australia Bob Every described Australia as a mere “quarry”. continue…

by Roger Montgomery Posted in Economics, Editor's Pick.

• save this article
• POSTED IN Economics, Editor's Pick