Market commentary
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Why we need to cut taxes for lower paid workers
Roger Montgomery
October 22, 2019
In September, the Reserve Bank of Australia lowered its cash rate by 25 basis points to a new record low of 0.75 per cent. It was the third rate cut this year. The rate cuts aim to boost our economy and support employment. But I seriously doubt they will be enough, on their own, to stimulate growth. To my mind, it’s time to cut taxes for lower paid workers. continue…
by Roger Montgomery Posted in Market commentary.
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Our economy is getting simpler – and that’s not good
Andreas Lundberg
October 10, 2019
KISS, an acronym for ‘keep it simple, stupid’, is a principle that works well in the field of design. But not when it comes to the national economy. It is thus a real worry that recent research finds Australia has a ‘simple’ economy that depends on relatively few sources of export income. This leaves us exposed to changes in demand for our products, and creates risks for our national wealth. continue…
by Andreas Lundberg Posted in Market commentary.
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How to prevent a recession we don’t have to have
Roger Montgomery
October 8, 2019
Back in November 1990, with the Australian economy deep in the doldrums, Treasurer Paul Keating uttered his now famous remark that this was “a recession that Australia had to have”. It was, remarkably, Australia’s last recession. Today, with our economy again looking into the abyss, I believe there is a simple measure the government could take to prevent the next one. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary.
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Rebalancing a portfolio in a volatile market
Roger Montgomery
October 2, 2019
As the sharemarket gyrates around record highs, it is easy to conclude that risks are low. In fact, if a simple market truth is observed – that the higher the price you pay, the lower your return – then it must be true that as the market registers new highs, conditions are riskier. continue…
by Roger Montgomery Posted in Investing Education, Market commentary.
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What if interest rates don’t go to zero?
Roger Montgomery
September 24, 2019
When it comes to investing, it can often pay dividends to zag when everyone else is zigging. And that’s equally so when it comes to interest rates. At a time when everyone is assuming that rates will go to zero – and possibly beyond – it may be worth stepping back and pondering… what if they don’t? continue…
by Roger Montgomery Posted in Market commentary.
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Anatomy of the Australian Small Cap Market – a focus on Growth
David Buckland
September 18, 2019
In reference to Monday’s blog Gary Rollo, Portfolio Manager for the Montgomery Small Companies Fund, makes some very interesting points regarding the anatomy of the Australian small cap market with respect to the “Growth” sector. continue…
by David Buckland Posted in Investing Education, Market commentary.
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The Anatomy of the Australian Small Cap Market
Gary Rollo
September 16, 2019
We like small companies with strong growth potential, especially if they are relatively undiscovered. In this article, we share the four segments we use to classify the small-cap universe. continue…
by Gary Rollo Posted in Investing Education, Market commentary.
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Aussie cash rates down from 6% to 1% since the GFC
David Buckland
September 10, 2019
In this week’s video insight David takes a look the journey of interest rates. Over the decade since the Global Financial Crisis – and despite record low interest rates – Central banks are fighting a relatively low growth and low inflation environment, and they don’t seem to be winning. Why?
by David Buckland Posted in Global markets, Market commentary, Video Insights.
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What did the August 2019 reporting season tell us?
Andreas Lundberg
September 3, 2019
Phew! So much anticipation. So much data to digest. One early conclusion to draw from reporting season is that consumer spending isn’t very healthy. Taking a look at the sector breakdown, consumer discretionary and consumer staples were the worst off. continue…
by Andreas Lundberg Posted in Market commentary.
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How long can the market’s ‘consensual hallucination’ go on?
Roger Montgomery
September 3, 2019
When I look at some of the absurd valuations of profitless companies – both here and in the U.S. – I wonder if the market is suffering from some form of consensual hallucination. I also wonder how long this induced state of bliss can go on. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary.