Market commentary

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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When should you hold more cash? The simple answer is: when fewer people are holding it. Because that’s when it’s most valuable. And, right now, after the stampede to other asset classes, cash is more valuable than it has been for some time. continue…

by Roger Montgomery Posted in Market commentary.

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Each year brings forth a new batch of invitations to equity and investor conferences. At first glance, the conferences seem informative. But is there really any value in attending? Well, having just gone to my first one for some time, I thought I’d present a few thoughts on what I think you will – and won’t – get out of a conference. continue…

by Andreas Lundberg Posted in Market commentary.

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Warren Buffett once wrote that “cash is a bad investment over time.  But you always want to have enough so that nobody else can determine your future.”  We agree.  And with most investors having migrated away from cash, we see some good reasons why holding more looks like a good idea right now.

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

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At Montgomery Investment Management, our philosophy is based on owning businesses with future cash flows that are expected to be large compared with their market value. Fundamental analysis is not the only way to think about equities, but it has a strong intuitive appeal, sound theoretical underpinnings, and has been applied to good effect by a number of very successful investors over the years. continue…

by Tim Kelley Posted in Market commentary.

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