Editor’s Pick

That’s a headline designed to capture your attention. If it has done so, it is highly probable that a crash is one of your fears. And for some people with that fear, the concern is great enough that it has impacted their investing outcomes and returns. For example, they may have held off buying shares in a company that subsequently rocketed higher, simply because you feared the market was due for a correction or crash. You may have also sold a stock too early, even though nothing about the company in which you owned the shares had changed. You simply thought some exogenous event would trigger a broad market correction. And, in a more extreme example, you were right in your prediction about the market falling, but the shares you owned continued to climb. continue…

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

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Australia is experiencing a population and demographic transformation, with nearly 50 per cent of our population able to claim at least one parent born overseas. George Tharenou of UBS analysed the implications in his recent report entitled “How will a ‘Big Australia’ impact the economy and the ‘intergenerational contract’?” The report dives deep into the effects of Australia’s population boom on the economy, asset prices, productivity, housing, and superannuation. continue…

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

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As you know, four-wheel drive (4WD) aftermarket parts and accessories manufacturer, distributor and retailer ARB Corporation (ASX:ARB) is one of the highest A1-quality companies listed on the Australian Securities Exchange (ASX). As we have written here at the blog many times, I believe, over time, investors will transition from seeing it as being dominated by the cyclicality of its Australian business to a global, vertically integrated growth story with the U.S. ultimately generating vastly more revenue than its local operations.  continue…

by Roger Montgomery Posted in Companies, Editor's Pick, Stocks We Like.

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Ten years ago, radiology software company Pro Medicus (ASX:PME) was trading at just 86 cents. Yesterday, with a share price of $149, investors have seen their money grow over 17,000 per cent in a decade.  

The company supplies software technology used by radiologists (who are extremely expensive for hospitals to employ) for medical diagnoses, which also renders them more efficient.  continue…

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

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As a Gen Xer myself, it seems the press has left us behind, sandwiched as it were, between the Baby Boomers and Millennials. So, when an article purporting to describe me occasionally appears, I sit up and take notice. What do the media and financial experts think of my generation? Did they get it right? Or are they necessarily broad generalisations that don’t apply to me or my friends?  continue…

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

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For background information about this A1-quality company, I previewed REA Group’s (ASX:REA) latest results here, wrote about why I believe REA Group is one of Australia’s highest-quality businesses here, and I also wrote about why REA Group will keep delivering for investors here.  continue…

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

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The Australian car market is navigating turbulent waters, with conditions expected to worsen before stabilising. As interest rate hikes continue to pressure household and business budgets, consumers appear to be eschewing big-ticket purchases like cars. continue…

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

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ResMed (ASX:RMD) reported its June quarter and full year results after the U.S. market closed on Friday morning. The company met consensus expectations for both revenue and earnings.   

ResMed’s revenue rose nine per cent to US$1.2 billion ($1.85 billion) in the last quarter of fiscal 2024, taking quarterly dividends to US$0.53 per share, up 10 per cent. Operating profit was up 38 per cent, and non-GAAP operating profit was up 30 per cent.  continue…

by Roger Montgomery Posted in Companies, Editor's Pick, Stocks We Like.

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In my recent article for Firstlinks, I explore the rising concerns about a potential market correction. Since 2022, I’ve been optimistic about stocks rising despite recession fears and increasing interest rates, based on expectations of positive economic growth and disinflation. Disinflation has historically benefited innovative companies with pricing power. However, investors like Ruffer LLP and Mark Spitznagel now warn of a severe market crash due to shrinking U.S. liquidity. While their warnings merit attention, I believe that positive growth and slowing inflation will continue to support innovative growth companies. Read the full article here for my full insights: What to do about the growing chorus of market correction warnings? continue…

by Roger Montgomery Posted in Editor's Pick, On the Internet.

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In July last year, here at the blog, I noted the AI bubble could only become a bona-fide boom if AI is monetised.  

Back then I noted Google’s (NASDAQ:GOOG) “significant strides in the integration and security of artificial intelligence (AI) in their products and services” and Meta’s (NASDAQ:META) plans to incorporate AI text, image, and video generators into Facebook and Instagram, allowing customers to modify their own photos using text prompts and share them on Instagram stories weren’t meaningful in terms of generating additional revenue from existing users. Sure, they might assist users, enhance their experience, and be entertaining, but would they be meaningful enough for users and advertisers to be willing to pay more? The jury was out.  continue…

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

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