Market commentary
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The artificial intelligence gold rush & bubbles past
Roger Montgomery
September 29, 2025
Last week, The Wall Street Journal (WSJ) published a piece commenting on the artificial intelligence (AI) infrastructure frenzy. As an investor, one can’t help but be awestruck while also feeling concern and a more than a hint of déjà vu.
According to the WSJ, Ellendale, North Dakota, is a sleepy town of just 1,100 now playing host to a half-built AI data centre that’s will be larger than 10 Home Depots – the U.S. equivalent of a large format Bunnings Warehouse here in Australia. continue…
by Roger Montgomery Posted in Global markets, Market commentary, Technology & Telecommunications.
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The puzzle of U.S. bond yields
Roger Montgomery
September 29, 2025
Since inflation peaked at 9.1 per cent in mid-2022, consumer prices have cooled dramatically, job growth has dwindled from nearly 4 per cent annually to a meagre 0.9 per cent, nominal gross domestic product (GDP) expansion has halved from 10 per cent to 4.6 per cent, and commodity prices have dropped 15 per cent. Despite all of this, bond yields have stubbornly refused to ease. Mainly hovering between 4 per cent and 5 per cent – and sitting at around 4 per cent today – bullish investors argue these yields are oddly, and unjustifiably, detached from the underlying economic slowdown. Real activity has tapered and consumer price index (CPI) inflation has plummeted to 2.9 per cent. So why haven’t yields collapsed? continue…
by Roger Montgomery Posted in Global markets, Investing Education, Market commentary.
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The bull case for small caps
Roger Montgomery
September 26, 2025
If you were listening carefully during reporting season, you might have noticed a growing buzz around small-cap stocks, both here in Australia and in the United States.
More investors are now seeing small caps as a hidden gem. Small caps seem undervalued, overlooked, and are showing signs of a strong recovery.
If you don’t already have an allocation to small caps in your portfolio, now could be the right time to take a closer look. continue…
by Roger Montgomery Posted in Companies, Investing Education, Market commentary.
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In gold we trust
Roger Montgomery
September 24, 2025
With trust in central financial institutions being undermined, and with the U.S. dollar’s status as the world’s unassailable reserve currency being called into question, it comes as no surprise that gold is the asset cementing its place in the spotlight.
As Figure 1., reveals the exponential ascent of gold’s price. continue…
by Roger Montgomery Posted in Market commentary.
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Fear + Greed – what went wrong at Myer
Roger Montgomery
September 24, 2025
I joined Sean Aylmer on Fear + Greed yesterday to discuss Myer’s disappointing announcement of a 30 per cent decline in profit, which was followed by a 25 per cent drop in its share price.
So, what went wrong?
As a traditional bricks-and-mortar department store, Myer has been grappling with significant challenges. Its move into the highly competitive online retail space has brought debt and complex integration issues, while also placing it in direct competition with pure-play online retailers. continue…
by Roger Montgomery Posted in Companies, Market commentary, Podcast Channel.
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Sky high bond yields: a reckoning for equity investors?
Roger Montgomery
September 24, 2025
A falling U.S. dollar, China and Russia stacking gold and angling to take Taiwan, surging U.S. debt and a President dismantling the independence of America’s central bank. It’s no wonder bond yields are high.
Fiscal recklessness is stirring in the bond markets, and long-dated government debt appears to be under siege once again. Yields on 30-year U.S. Treasuries were at 4.97 per cent at the start of September – now at 4.66 per cent – and near their highest level since 2007, Britain’s 30-year gilts spiked to a 27-year high of 5.75 per cent at the start of September, while Japan’s 20-year notes flirted with levels unseen since 1999. French and Australian sovereign bonds yields are soaring too. continue…
by Roger Montgomery Posted in Market commentary.
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Turbulence in global bonds and a steady beat in US earnings
Roger Montgomery
September 22, 2025
If you’re tracking equities, it’s vital to keep an eye on the bond markets, as they’re signalling genuine unease. That nervousness is now rippling through global economies. continue…
by Roger Montgomery Posted in Economics, Global markets, Market commentary.
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The looming spectre of stagflation
Roger Montgomery
September 11, 2025
With the U.S. stock market hovering at levels some describe as ‘stretched’, economic indicators are flashing mixed signals, prompting some observers to raise the spectre of stagflation – a toxic brew of stagnant growth and persistent inflation. continue…
by Roger Montgomery Posted in Market commentary.
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Are liquidity and deflation risks emerging? One economist is worried
Roger Montgomery
September 10, 2025
Investors are debating a number of scenarios. One is that Trump will install enough cronies on the board of the U.S. Federal Reserve that rates will be cut as many as five times in the next year. Supporters believe this could be incredibly bullish for markets, especially equities. continue…
by Roger Montgomery Posted in Global markets, Market commentary.
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Will U.S. rates be cut this year?
Roger Montgomery
September 5, 2025
I recently penned a blog post in which I highlighted the market-related concerns of American economist, chess Grandmaster, professor of international economics at Harvard University, former International Monetary Fund (IMF) Chief Economist and co-author of This Time is Different: Eight centuries of Financial Folly, Kenneth Rogoff. continue…
by Roger Montgomery Posted in Global markets, Market commentary.
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