Economics

One of the most frequently asked questions by investors following Trump’s election victory is: what sectors will do well? While much remains unknowable about Trump’s second term, his “promises made, promises kept” statement during his victory speech suggests not all is a mystery.  continue…

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

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That race toward artificial intelligence (AI) dominance we’ve all been hearing about has prompted some of the world’s largest technology companies – Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) platforms included – to ramp up capital expenditures (CapEx) to unprecedented levels. continue…

by Roger Montgomery Posted in Companies, Economics.

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Famed 20^th-century British author Gilbert Chesterton (1874-1936) once observed, “The poor have sometimes objected to being governed badly. The rich have always objected to being governed at all.” continue…

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

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My friend Mick Mulvaney was in town recently. Mick was a former Republican Congressman for South Carolina from 2011 to 2017 and served as director of the U.S. Office of Management and Budget, acting director of the Consumer Financial Protection Bureau and White House Chief of Staff from January 2019 to March 2020, under President Donald Trump. A big achievement for someone who had publicly called Trump “a terrible human being”. continue…

by David Buckland Posted in Economics.

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Take a journey with me for a moment back to mid-2020, right after the World Health Organisation (WHO) finally conceded the world was in a crippling pandemic. continue…

by Roger Montgomery Posted in Economics.

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Today’s investors are focused on interest rates, inflation and earnings. A small group are thinking about the issues that could surface in two or three years, such as China annexing Taiwan and the consequences of artificial intelligence’s (AI) birth. An even smaller group are thinking about what lies beyond that. continue…

by Roger Montgomery Posted in Economics, Property.

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Over 11,000 Australian companies entered administration in the 2023/ 24 financial year. The bad news continued with a further 3,300 insolvencies in the September 2024 quarter. This is around four times the quarterly average since the business insolvency data was collated (from 1999). However, when we consider the total number of companies registered with the ASIC, the data doesn’t look that bad. 

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by David Buckland Posted in Economics.

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In his latest newsletter entitled “Shall We Repeal the Laws of Economics”, Howard Marks posited “deficits encourage the economic growth that most people enjoy, and spending more than the government takes in permits officials to give away “free stuff”, thereby gaining votes. But doing this perpetually requires ignoring the laws of economics, running up debts in the apparent belief they’ll never have to be paid. Can it go on without end? We’ll see, but I would think not”. continue…

by David Buckland Posted in Economics.

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A portrait of Australia’s biggest issues in eight charts. Why eight? – it’s a lucky number of course!

I have put together a concise snapshot of the complex economic challenges shaping Australia today.

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

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In my professional opinion, there’s limited value that can be garnered from historical patterns, especially when those patterns examine the correlation between a single input and its result. Economies and markets are complex adaptive systems, and a myriad of inputs produce the market returns we subsequently experience. Just because something happened five, ten or fifteen times in the past, it is dangerous to conclude it will occur again next time. continue…

by Roger Montgomery Posted in Economics.

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• POSTED IN Economics