Market commentary

Central banks could soon end their bond buying activities, thereby unwinding quantitative easing. Should this occur, real interest rates would again be driven by the normal forces of supply and demand. And this could affect stock valuations. continue…

by Stuart Jackson Posted in Financial Services, Market commentary.

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In June, Australia took the record for the longest run of uninterrupted growth in the developed world. In the same week, it was reported that the share of Australian GDP going into workers’ pockets hit a record low. It’s therefore timely to look at the difference between total GDP and GDP per capita, and the outlook for retail spending and consumer-driven businesses. continue…

by Andreas Lundberg Posted in Market commentary.

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At Montgomery, we focus our efforts on identifying high quality companies with bright prospects. When combined with a disciplined and patient approach on buying at a discount to fair value, we believe that in the long term, these companies provide an attractive combination of stronger returns with lower than average risk. continue…

by Stuart Jackson Posted in Market commentary.

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As fiscal 2017 draws to a close, let’s take a look at the year that was. continue…

by David Buckland Posted in Economics, Global markets, Market commentary.

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The higher the price you pay, the lower your returns. This is a fundamental truth of investing, a law, like gravity, and an impost that cannot be escaped. And yet it is always the case that when future returns are the least attractive, enthusiasm for assets is highest.  continue…

by Roger Montgomery Posted in Investing Education, Market commentary.

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Last year saw a ‘junk rally’ in equity markets: higher quality businesses delivered generally weaker returns, while lower quality businesses did better. This made it hard for fund managers like us – who are wedded to the high-quality end of the market – to keep up with the benchmark. Is our adherence to quality, through thick and thin, the right approach? We think so, and the research bears this out. continue…

by Tim Kelley Posted in Market commentary.

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The following table reveals the financial stress on interest only mortgagors is mounting. continue…

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

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Willem Buiter is the highly respected Chief Economist at Citigroup, and when he speaks, people tend to listen. Last week, in an interview with the ABC, Buiter sounded a strong warning about China’s debt bubble, and the ramifications for Australia. continue…

by David Buckland Posted in Market commentary.

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by Roger Montgomery Posted in Market commentary.

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Altair Asset Management made headlines this week with its decision to liquidate its portfolios, reasoning that it intends to avoid a market crash. Altair’s bold move came in the midst of a growing media focus on the extent of overvaluation – and potential risk – in asset markets, including equities, property and collectibles. continue…

by Tim Kelley Posted in Market commentary.

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