Market commentary
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Why today’s inflation fears provide a great share-buying opportunity
Roger Montgomery
May 19, 2021
Right now, inflation is the new bogey man. And it’s having an impact on equity markets. But is rising inflation just a blip caused by short-term bottlenecks in the supply of labour, or a long-term structural issue? If it’s just a blip – which I think it is – then any weakness in the share prices of high quality companies will provide us with a classic contrarian opportunity. continue…
by Roger Montgomery Posted in Global markets, Market commentary
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What return can you expect from Australian equities?
Tim Kelley
May 18, 2021
Equities, while volatile, have historically provided attractive returns to long-term investors. The ASX All Ordinaries Index, for example, has delivered a compound total return (capital growth plus dividends) in the region of 12 per cent p.a. since 1900. continue…
by Tim Kelley Posted in Market commentary
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Have we reached peak economy?
Roger Montgomery
May 11, 2021
As world economies start to bounce back after their COVID-19 lockdowns, inflation is back on the agenda. Federal Reserve Chairman, Jerome Powell, thinks the current spike is transitory. Time will tell if he’s right. But whether it’s transitory or persistent, inflation will impact stock market returns. continue…
by Roger Montgomery Posted in Editor's Pick, Global markets, Market commentary
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Take advantage of inflation fears
Roger Montgomery
May 7, 2021
Fear of reemergent inflation peaked earlier this year, coinciding with a surge in US ten-year bond rates to 1.745 per cent at the end of March. While bond rates have eased slightly (now 1.61 per cent) they remain persistently and materially higher than at any time in 2020. Part of the reason remains lingering concerns about inflation. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary
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For the Australian economy, it’s full steam ahead!
Roger Montgomery
May 4, 2021
Compared to most other major economies, Australia is now in a sweet spot. After breezing through the COVID-19 pandemic, economic growth is above expectations, unemployment is low, and the outlook for business is incredibly positive. If you add low rates and ongoing government support to the mix, it all adds up to a rosy near-term outlook. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary
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WHITEPAPER
VALUE AND GROWTH: TWO SIDES OF THE SAME COIN
The investment industry and media spend a lot of time discussing ‘value’ versus ‘growth’ investing – and which of them is currently winning. But we don’t believe they’re opposite concepts. Investors should consider both ideas together as they seek out quality companies with bright prospects that will deliver rewards over time.
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How Australia will look in a 3°C warmer world
Andreas Lundberg
April 12, 2021
The Australian Academy of Science has just released a landmark report looking at the long-term impacts on Australia from rising temperatures due to global warming. It’s called The Risks to Australia of a 3°C Warmer World, and I believe it is essential reading. continue…
by Andreas Lundberg Posted in Editor's Pick, Market commentary
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Where to invest in 2021
Roger Montgomery
March 15, 2021
The highly respected financial services company, Gavekal, recently published its analysis of S&P500 returns during periods of inflation and disinflation (falling inflation) and, by implication, deflation. Its findings are of profound significance for all investors. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary
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Aussie companies are now global standouts
Andreas Lundberg
March 10, 2021
According to JP Morgan, companies on the ASX have, on average, received some of the largest positive earnings per share revisions anywhere in the world. The reason is likely because our economy has been less impacted by COVID-19 than in most other nations. But this doesn’t mean our market is looking cheap. continue…
by Andreas Lundberg Posted in Companies, Market commentary
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Why you should be wary if bond rates rise
Roger Montgomery
March 5, 2021
Falling bond rates have helped propel the prices of long-duration assets – like shares, housing and gold – as well as speculative ‘assets’ like cryptocurrency. But, if rates start to rise in a meaningful way, the price of these assets could tumble. Now could be a good time to re-assess your portfolio. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary
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My take on a terrific reporting season
Roger Montgomery
March 3, 2021
One year ago, with the world entering a pandemic nightmare, who could have predicted the amazing first half reporting season just gone? Now, with bond rates climbing, the big question for investors is what lies ahead. continue…
by Roger Montgomery Posted in Companies, Market commentary
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