Economics

It was a rather gloomy week of economic data releases – total job advertisements in Australia and New Zealand were down by 2 per cent for the month of August, while unemployment rose from 5.7 per cent to 5.8 per cent over the same period. And yet the share price of Seek, Australia’s leading employment classifieds website owner, has risen by 1.7 per cent over the week. That raises the question; why are the rising unemployment headlines not having the same adverse impact on the company’s performance as they once did? continue…

by Ben MacNevin Posted in Companies, Economics, Insightful Insights, Value.able.

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Joe Granville, whose stock market career began in 1957 in the offices of E.F. Hutton and Co., has passed away aged 90. continue…

by Tim Kelley Posted in Economics.

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Ten year bond yields in a number of western world economies have increased by an average 0.7% over the past year continue…

by David Buckland Posted in Economics.

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The US Federal Reserve is using a variety of communications channels to indicate that it may be ready to start winding down the asset-purchasing arm of quantitative easing. continue…

by David Buckland Posted in Economics.

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Back on April 14th, we wrote the following column. Once again, it proved prescient.

Having taken some profits in overstretched retail stocks and having avoided mining services and mining completely (other fund managers have not been so fortunate) The Montgomery [Private] Fund has 45% of its portfolio in cash ready to take advantage of opportunities as they arise. Investors are in the fortunate position of having almost half of the portfolio in the safety of cash.
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by Roger Montgomery Posted in Economics, Insightful Insights.

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Part two of a two part series on the demise of Australia

Last week, we began our ‘Australia on the Precipice’ series and argued that our nation’s future looked bleaker than many were currently anticipating. Since then the stock market has slumped as has the Australian dollar and the RBA capitulated to growing economic headwinds and lowered Australia’s benchmark rate to 2.75%—an all-time low. Keep in mind all of this can turn around in an instant, rendering us completely wrong!
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by Roger Montgomery Posted in Economics, Insightful Insights.

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Part one of a two part series on the demise of Australia

Last week’s year-six father and son breakfast was never expected to throw up any investment ideas. Indeed, I was so focused on the kids that I wasn’t even listening out for investment insights when one hit me, or, to be more accurate, brushed gently before me.
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by Roger Montgomery Posted in Economics, Insightful Insights.

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Kopi Luwak refers to the beans of coffee berries once they have been eaten and excreted by the Asian Palm Civet. Passing through a civet’s intestines, the beans are then defecated with other fecal matter and collected, dried and eaten or drunk… or perhaps eaten by drunks.
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by Roger Montgomery Posted in Economics, Insightful Insights.

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At Montgomery, we focus more of our attention on the economics of individual businesses, rather than the macro business environment. We do this because we believe it’s very hard to forecast macro variables with any reliability, and we know that the best companies can do well even in a difficult environment.
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by Tim Kelley Posted in Economics.

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Tonight should see the European Central Bank’s Governing Council cut its benchmark rate to a record low 0.5 per cent.
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by David Buckland Posted in Economics.

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