Market commentary

The new Montgomery Alpha Fund has just completed its first month of live trading, returning a pleasing 3.24 per cent for August after all fees. Given our target for the Fund is to return 6-8 per cent above the cash rate annually, this is well ahead of what we might consider “normal”.  There are a couple of observations around risk and return worth making here. continue…

by Tim Kelley Posted in Market commentary.

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With low interest rates prompting so many investors to stampede into high dividend-paying stocks, it appears we are re-living the exuberance of the dotcom era. But ultra-low rates aren’t normal, and as rational investors we need to avoid the pitfalls of herd mentality. continue…

by Roger Montgomery Posted in Market commentary.

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How often have we read or heard that a listed company has missed guidance? Ahead of the upcoming 2016 reporting season, I have been thinking about whether guidance is helpful or not and have been encouraged by recent developments. continue…

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

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In this interview with Peter Switzer, Roger Montgomery joins Switzer TV to discuss the current reporting season and expectations for this year. continue…

by Roger Montgomery Posted in Market commentary.

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So far, 2016 hasn’t been an easy time for quality-oriented investors.  If you look at returns across the ASX, low quality companies, like many in the Materials and Energy sectors, have provided stellar returns, while high quality companies have delivered comparatively boring returns. Despite this, we don’t believe it’s time to abandon quality businesses. continue…

by Tim Kelley Posted in Editor's Pick, Market commentary.

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From skirt lengths, to magazine covers to public protests and the rise of ant-establishment voting, signals are everywhere. And, as investors, we need to pay attention to them. Which is why the imminent sale of the long-held Soul Pattinson building in Sydney’s Pitt Street Mall caught our eye. To us, it’s yet another signal that asset prices are over-stretched. continue…

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

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It’s not news to anyone reading the Insights Blog here that bond rates are at record-lows.  And it should be no secret that US stocks are summiting record highs. But it shouldn’t be happening and it isn’t logical.  continue…

by Roger Montgomery Posted in Economics, Market commentary.

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Recent research by Montgomery shows that not only are high quality businesses, running ahead of their intrinsic value. So, too, are the largest names on the ASX. Which means long-term investors should approach this market with a degree of caution. continue…

by Tim Kelley Posted in Market commentary.

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Jeremy Grantham is the co-founder and chief investment strategist of Grantham, Mayo, & van Otterloo (GMO), a Boston-based asset management firm with more than US $118 billion under management. His letters are always worth reading. “I set myself a task this quarter to give my views on why suddenly so many strange things are going on in the US and in the UK and what they might mean.”

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by Roger Montgomery Posted in Market commentary.

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The record low interest rate environment is seeing investors buying speculative grade corporate debt and extending maturities to generate positive yields.  The rewards are becoming increasingly unsustainable given the level of risks. continue…

by David Buckland Posted in Economics, Market commentary.

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