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“You cannot be afraid of new technologies. I think that this tenet passed Warren Buffett by. As he is the greatest investor of all time, I think it’s important to recognise that if he were not afraid of product cycles and obsolescence, he would have made much more these last few years than he did. Now, I know we shouldn’t criticise someone of his unbelievable prowess, but we must also recognise that it was wrong not to include technology stocks in the portfolio…[they] are creating too much wealth to ignore.”

With Musk now the world’s first recorded trillionaire after SpaceX’s float last Friday, you might be thinking the above quote has merit, especially as 60 per cent of Berkshire Hathaway’s portfolio is sitting in cash. 

But the above quote, by Jim Cramer, was made in January 2000, just three months before the Dot.Com crash wiped 76.81 per cent from the tech-heavy NASDAQ Composite index and investors saw an estimated US$5 trillion in paper wealth evaporate between 2000 and 2002. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Global markets, Market commentary, Technology & Telecommunications.

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I joined Kylie Morris on ABC Newcastle Mornings today to discuss the extraordinary rise of SpaceX following its record Initial Public Offering (IPO). We explored why the company’s valuation appears disconnected from traditional measures of value, how NASDAQ’s fast-tracked index inclusion could force ETFs and superannuation funds to buy shares, and why investors should be mindful of the risks that can emerge when market hype and scarcity drive prices higher.

Listen from 37:04: ABC Newcastle Mornings continue…

by Roger Montgomery Posted in Companies, Global markets, Market Valuation, Radio.

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A peace deal between Iran and the United States has transformed the outlook for global markets – at least for now.

I joined Sean Aylmer from Fear and Greed, to discuss which sectors stand to benefit most from falling oil prices, why airlines, retailers and property stocks could outperform, and why history suggests investors should be cautious despite the optimism.

I also touch on the extraordinary valuation of SpaceX, why Elon Musk may be the greatest marketer the world has ever seen, and the surprising role Google may have played ahead of the company’s IPO.

Listen here: 

by Roger Montgomery Posted in Global markets, Insightful Insights, Market Valuation, Podcast Channel.

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I joined ABC Weekend Breakfast to discuss the record-breaking SpaceX Initial Public Offering (IPO), which briefly pushed Elon Musk’s wealth beyond US$1 trillion and valued the company at more than US$2 trillion. We explored what drove the strong debut, why much of SpaceX’s revenue now comes from its AI and data centre businesses rather than its space operations, and how NASDAQ’s decision to fast-track the stock into its index could force ETFs and index funds to buy shares. We also discussed the potential impact of insider selling in the months ahead and what the IPO could mean for everyday investors. continue…

by Roger Montgomery Posted in Economics, Global markets, Market commentary, Popular, TV Appearances.

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The defining irony of today’s stock market has got to be the yawning chasm between asset prices and their intrinsic values. As equity indices scale ever higher peaks, and as hyper-parabolic Price-to-Earnings (P/E) and Price-to-Sales (P/S) ratios are normalised, the underlying truths don’t seem to have changed. Eventually even this bubble must bust.

U.S.-based senior economist at the Centre for Economic and Policy Research (CEPR) in Washington, DC, and author of the ‘AI Bubble Monitor’, and U.S.-based antitrust and policy analyst Matt Stoller reckon this dynamic can be attributed to something Stoller calls the “Number Go Up Rule”– a systematic rewiring of institutional incentives to ensure corporate valuations ascend at all costs, and frequently favouring speculative mania over fundamentally productive or socially additive enterprises. continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Global markets, Insightful Insights, Investing Education, Market commentary, Popular.

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Bullish investors believe AI is a new, infinite fourth factor of a nation’s production and wealth creation. In the past, we had labour, capital and land as production inputs, all of which were, of course, finite. Land provided the raw materials, labour the muscle and the mind to transform them, and capital was the tool.

Enter AI. The transformative aspect of this fourth ingredient is that, unlike the physical limitations of land or the finite hours of the human workforce, data is a resource that is functionally unlimited. And, importantly, it’s the only factor of production that actually grows more abundant the more we use it.

This article was first published in The Australian on 27 May 2026.

by Roger Montgomery Posted in Editor's Pick, Global markets, In the Press, Insightful Insights, Investing Education, Market commentary, Market Valuation, Popular, Technology & Telecommunications.

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I joined Niav Owens on ABC Newcastle Mornings to discuss what history tells us about oil-price spikes and share markets, and why falling oil prices are not always positive for equities. We also explored the growing excitement around SpaceX, including the bullish case for the company, concerns about its proposed IPO structure, and why investors should be cautious of getting caught up in market hype. continue…

by Roger Montgomery Posted in Global markets, Market commentary, Radio.

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I joined Jess Maguire on ABC Statewide Drive to discuss what rising oil prices and the conflict in the Middle East could mean for markets. We looked at historical data showing that past oil-price peaks have often been followed by weaker share markets, and also explored the growing excitement around SpaceX, including the opportunities and risks for investors considering investing in the company.

Tune in from 1:46:33 here: ABC Statewide Drive continue…

by Roger Montgomery Posted in Economics, Energy / Resources, Global markets, Market commentary, Radio.

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Australia and the United States (U.S.) currently have one thing in common. 

Consumer confidence is in a world of pain. 

In the U.S., the Consumer Sentiment Index (CSI) has fallen to the lowest level ever recorded since the University of Michigan began tracking the data in 1952.

The Index, see Graph 1. and Table 1. below, hit 44.8 in May 2026, as Americans fear inflation, rising fuel costs, economic instability associated with the Iran War and the worry artificial intelligence (AI) will take white collar jobs.

When I look at the U.S. inflation rate – which was 3.8 per cent for the year to April 2026 – and the U.S. Federal Funds Rate at 3.75 per cent, I again point out a significant anomaly. continue…

by David Buckland Posted in Economics, Global markets, Insightful Insights, Investing Education, Market commentary.

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On December 11, 1974, influential Austrian-born British economist and philosopher, Friedrich von Hayek, best known as a champion of free-market capitalism and classical liberalism, and a fierce critic of socialism and state intervention, delivered “The Pretence of Knowledge” as his Nobel Memorial Lecture. It was later published as an essay and remains one of his most famous critiques of central planning and hubris in economics. continue…

by Roger Montgomery Posted in Economics, Global markets, Insightful Insights, Investing Education, Market commentary.

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