Insightful Insights

Writing in The Wall Street Journal, David Malpass said; “A year ago the International Monetary Fund projected world GDP at $82 trillion in 2015, but it will likely end up at only $72 trillion, a $10 trillion shrinkage. There’s lots of blame to go around, but the Fed’s seven-year zero-rate trap is a big part of the problem”. continue…

by David Buckland Posted in Insightful Insights.

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In this interview with Julian Lorkin on 2GB Money News, David discusses volatility in European markets and the implications for the Australian economy. He mentions vulnerability in the resource sector, overproduction of steel in China and dumping on global markets.

Click here to listen to the radio clip.

You can listen to any of the Montgomery team’s radio interviews through browsing our media library, listen to more clips here.

by David Buckland Posted in Insightful Insights.

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Whilst many market observers appear to be obsessed about a falling and volatile market, let’s flip all that on its head and instead focus on something a little more productive and a little more positive. continue…

by Russell Muldoon Posted in Insightful Insights.

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As most readers will know, in July 2015 we launched the Montgomery Global Fund and The Montaka Global Fund. We were rather shocked when, just a month later in August, two or three investors withdrew their investment. When surveyed, the investors who withdrew their investments cited fears about an economic slowdown in China and its potential impact on markets globally. continue…

by Roger Montgomery Posted in Insightful Insights, Investing Education.

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As many readers are aware, the Montgomery funds monitor the telecommunications industry on a consistent basis. With the development of the National Broadband Network over the next decade there appears to be an immense number of opportunities for valuation creation as the spend of each broadband consumer rises and the number of broadband users across Australia continues to grow. continue…

by Scott Shuttleworth Posted in Insightful Insights, Technology & Telecommunications.

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As we have discussed a number of times in the past, the major banks face significant headwinds from increasing capital adequacy requirements over the next few years. This is due to a partial reversal of the significantly lower risk weightings that were applied to major bank mortgages, combined with the need to generally hold more equity capital to reduce the potential risks given their ‘too big to fail’ status in the Australian economy. continue…

by Stuart Jackson Posted in Financial Services, Insightful Insights.

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The year to June witnessed enormous variation in sharemarket returns. The Australian All Ordinaries Index recorded a miserly 1.3 per cent return, excluding dividends. The Shanghai Composite Index was easily the best performing major market with a return of 108.8 per cent. continue…

by Roger Montgomery Posted in Insightful Insights.

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One suspects when a blacksmith first spotted the horseless carriage driving past his workshop, had he considered it more than a fad, he might have realized his business would be disrupted. But would he have referred to the car or it’s manufacturer as a disrupter? Probably not. Disruption is the new buzzword to describe change or transition. continue…

by Roger Montgomery Posted in Insightful Insights.

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For a firm to grow in value, it must earn returns in excess of its cost of capital. Typically we expect that firms will achieve this by developing a competitive advantage difficult to replicate by competitors and exploiting said advantage for all it’s worth. But what if the firm has no competitive advantage? continue…

by Scott Shuttleworth Posted in Economics, Insightful Insights.

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We have previously warned of the perfect storm looming in Australia’s LNG market, as substantial export commitments threaten domestic supply. The ACCC has launched an inquiry into this opaque market, and the preliminary findings suggest the market has changed dramatically. continue…

by Ben MacNevin Posted in Energy / Resources, Insightful Insights.

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