Market commentary

A combination of booming protein consumption in China, drought in Australia and African swine fever is sending meat prices sky high. That’s great news if you’re a producer. But not so good if you’re a meat eater. To paraphrase former PM, Malcolm Turnbull, there’s never been a better time to be a vegetarian. continue…

by Roger Montgomery Posted in Market commentary.

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There are many factors which have driven the US Government Ten-Year Bond Yield down over the 35-year period from 15.85 per cent in the September Quarter of 1981 to 1.35 per cent in the September Quarter of 2016. While I will discuss these factors in more detail in an upcoming blog, what has struck me is that over recent weeks we have seen the US Government Ten-Year Bond Yield jump by nearly 0.5 per cent from close to a record low of 1.45 per cent to the current 1.93 per cent. continue…

by David Buckland Posted in Global markets, Market commentary.

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Growth investors are having a field day criticising the poor performance of value investing.  Their views have been bolstered by the booming price of some growth stocks – notably, profitless Unicorns – and research by two accounting professors,  found that not only had value investing failed for investors in recent years but that it had never worked. continue…

by Roger Montgomery Posted in Editor's Pick, Investing Education, Market commentary.

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Our very good friend the founder and CIO of Narrow Road Capital, Jonathan Rochford, writes a terrific monthly missive about the goings-on in financial markets around the globe.

The October report had this to say about trend in corporate bonds… continue…

by Roger Montgomery Posted in Market commentary.

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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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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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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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by Roger Montgomery Posted in Investing Education, Market commentary.

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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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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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