Insightful Insights

The US Congressional Budget Office (CBO) provides analysis on economic and budgetary decisions, and it’s just materially revised downward its growth projections for US federal healthcare spending. continue…

by Ben MacNevin Posted in Economics, Health Care, Insightful Insights.

• 2 Comments
• save this article
• POSTED IN Economics, Health Care, Insightful Insights

Our very good friend Mark Carew at Morgans whipped up these neat little clouds to visualise the relative popularity, at 30 June 2014, of various small cap stocks held by fund managers that specialise in small caps. continue…

by Roger Montgomery Posted in Insightful Insights.

• 1 Comments
• save this article
• POSTED IN Insightful Insights

We last wrote about Bentham IMF Limited (ASX: IMF) back in February, and now point out the company has filed proceedings on behalf of former and current BrisConnections unit-holders against Arup. Arup are the engineering consulting firm who prepared the traffic forecasts for the Brisbane Airport Link toll road. continue…

by David Buckland Posted in Insightful Insights.

• 3 Comments
• save this article
• POSTED IN Insightful Insights

One thing we can say about the Reserve Bank of New Zealand is they certainly move quickly when they think it is appropriate to do so.

For example, in the nine-month period between July 2008 and April 2009, the New Zealand official cash rate (OCR) was cut on seven occasions, from 8.25 per cent to 2.5 per cent.

Now the opposite is occurring and in the past four months the OCR has been increased on four occasions – each by 0.25 per cent – from 2.5 per cent to 3.5 per cent. The New Zealand economy is expected to grow by 3.7 per cent in 2014, with the recovery in construction and net migration adding to housing and household demand.

The graph below compares the New Zealand 90-day bank bill rate with the New Zealand official cash rate, which commenced life in March 1999 at 4.5 per cent.

by David Buckland Posted in Financial Services, Foreign Currency, Insightful Insights, Value.able.

• 3 Comments
• save this article
• POSTED IN Financial Services, Foreign Currency, Insightful Insights, Value.able

The one-year forward price-to-earnings (P/E) ratio for the S&P/ASX 200 index has varied significantly over the past few years. In 2011 it fell to 12 times, and recently market participants have been sufficiently enamoured to push the ratio as high as 16-17 times.

continue…

by Russell Muldoon Posted in Insightful Insights, Market Valuation, Value.able.

• 8 Comments
• save this article
• POSTED IN Insightful Insights, Market Valuation, Value.able

In the past decade, Australia has attracted considerable global investment in Liquefied Natural Gas (LNG). Yet the Wall Street Journal has reported that many of these projects have run considerably over-budget, lowering the incentive for further investment in the region. continue…

by Ben MacNevin Posted in Insightful Insights.

• save this article
• POSTED IN Insightful Insights

According to Deutsche Bank Research, earnings expectations for the Australian listed market have been cut in recent months. Forecast earnings growth for the year to June 2015 has come down to 6-7 per cent, slightly below expectations for the year to June 2014.

continue…

by David Buckland Posted in Insightful Insights.

• save this article
• POSTED IN Insightful Insights

We’re just putting the finishing touches on this year’s letters to our investors in both The Montgomery [Private] Fund and The Montgomery Fund. No, we aren’t about to publish the contents of those letters here. You’ll need to become an investor to see that. What we can say is that there is ample evidence to suggest the markets could keep going higher from here. It’s true that many signals suggest that long-term investors buying at today’s levels might be setting themselves up for low returns, but that doesn’t mean prices can’t go even higher (and consequently produce even lower returns for longer-term investors). continue…

by Roger Montgomery Posted in Insightful Insights, Value.able.

• 4 Comments
• save this article
• POSTED IN Insightful Insights, Value.able

Each week, we scan the market for fresh opportunities. If you’re doing the same – only to come up with a very small handful of desirable candidates (many of which you probably own already) – then you’re in good company. We can’t find a plethora of opportunities either. continue…

by Roger Montgomery Posted in Insightful Insights, Investing Education.

• 25 Comments
• save this article
• POSTED IN Insightful Insights, Investing Education

After a four-month search for the right candidate, The Reject Shop (ASX: TRS) has found a new CEO in Ross Sudano. continue…

by Scott Shuttleworth Posted in Consumer discretionary, Insightful Insights.

• 3 Comments
• save this article
• POSTED IN Consumer discretionary, Insightful Insights