Economics
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It’s time to take advantage of share price falls
Roger Montgomery
May 3, 2022
The price-to-earnings ratios of many quality businesses have fallen sharply over the last six months. In many cases, the falls were justified. Now that valuations have dropped, I believe investors have a far better chance of making attractive returns. The proviso, of course, is that you buy businesses that grow their earnings. continue…
by Roger Montgomery Posted in Economics, Market Valuation.
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US inflation and the pressure on asset valuations
David Buckland
January 24, 2022
Over calendar 2021, US inflation jumped from a very tame 1.4 per cent to a worrying 7.0 per cent, the highest level recorded in four decades. The last time US inflation was at this level, the yield on the US ten-year Government Bonds was 13.5 per cent. continue…
by David Buckland Posted in Economics, Editor's Pick, Market commentary.
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- POSTED IN Economics, Editor's Pick, Market commentary
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Two reasons this bull market is set to continue
Roger Montgomery
February 7, 2020
Since early 2009, soaring global markets have made shares an extremely rewarding place to invest. With profits likely to keep recovering, and interest rates and inflation likely to stay low, I see no reason why this bull market will not continue. continue…
by Roger Montgomery Posted in Economics, Global markets, Market commentary.
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Farewell 2019, Hello 2020
David Buckland
January 2, 2020
After recording an excellent performance in the June 2019 half-year, both the US Nasdaq and S&P 500 led the way in the December 2019 half-year with a return of 12.1 per cent and 9.8 per cent, respectively, for a return over calendar 2019 of 35.2 per cent (US Nasdaq) and 28.9 per cent (S&P 500). And this excludes dividends. continue…
by David Buckland Posted in Economics, Market commentary.
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Finding value, the marginal return on capital
Stuart Jackson
June 18, 2019
In assessing the value of a company, the market tends to focus almost exclusively on the outlook for earnings growth. While obviously important, this ignores other variables that are equally relevant in determining whether a stock represents a good investment from both a quality and a valuation perspective. continue…
by Stuart Jackson Posted in Economics, Investing Education.
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- POSTED IN Economics, Investing Education
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WHITEPAPER
INTEREST RATES, THE BEST IT GETS. IT’S TIME TO DEPLOY CASH
Curious about the investment landscape in 2024? It appears that the current market offers a plethora of enticing opportunities for investors, a rarity not experienced since pre-pandemic times. This unique scenario stems from a confluence of factors, including elevated yields and comparatively rational equity valuations.
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As Capitalism Marches On…
Roger Montgomery
December 18, 2018
As we head towards the end of the year we often become more reflective. One of the conversations that recently has been cropping up with people I meet annually before Christmas is the various limitations of capitalism. And as I think about these conversations I have realised that time plays an important part in the power to respond in a way that has positive outcomes. continue…
by Roger Montgomery Posted in Economics.
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- POSTED IN Economics
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Inflation, what is happening and what conclusions can we draw
Andreas Lundberg
November 1, 2018
Most people are familiar with the concept of inflation. As a quick recap, it is the process whereby prices tend to increase over time. A positive, but low, level of inflation is generally seen as positive for a number of reasons and central banks tend to manage their interest rates to try to hit an inflation target of generally around 2%. continue…
by Andreas Lundberg Posted in Economics.
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- POSTED IN Economics
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If the VIX is low, is it time to go?
Scott Shuttleworth
January 23, 2018
The Volatility Index – better known as ‘the VIX’ – is the most widely followed measure of stock market risk. Since March 2012, the VIX has remained stubbornly low, and some see this as a sign of a frothy market that’s about to sell off. I don’t necessarily agree, but what’s the best investment strategy just in case they’re right? continue…
by Scott Shuttleworth Posted in Economics, Editor's Pick, Market commentary.
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Farewell Fiscal 2017, Hello Fiscal 2018
David Buckland
July 3, 2017
As fiscal 2017 draws to a close, let’s take a look at the year that was. continue…
by David Buckland Posted in Economics, Global markets, Market commentary.
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Is the extraordinary bond market rally about to end?
David Buckland
January 25, 2017
The 36-year bond bull market is stretched and set for a serious nose dive, says Harvard University researcher, Paul Schmelzing. Schmelzing says global inflation could trigger large losses on bond holdings, subpar growth in developed markets, and balance sheet risks for banks. continue…
by David Buckland Posted in Economics, Market commentary.
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- POSTED IN Economics, Market commentary
