Market commentary

One of the most common questions we’re asked here at Montgomery concerns the timing of one’s investment, be it an initial amount or a further contribution. “Should I invest now or wait until later, when hopefully the market falls?” continue…

by Scott Phillips Posted in Market commentary.

• save this article
• POSTED IN Market commentary

We often write about what we don’t like. Individual companies that are expensive and those in industries we believe are being fragmented, disrupted or in structural decline are the topics you will usually find here. Today, however, I want to lump the entire market into the ‘Don’t like it’ bin. continue…

by Roger Montgomery Posted in Market commentary.

• 2 Comments
• save this article
• POSTED IN Market commentary

Whether it’s art, collectible cars, or shares in a company, your returns are determined by two things – quality and price. And the higher the price you pay, the lower your return.  It’s an aphorism that‘s stood the test of time – probably because it’s mathematically irrefutable.

continue…

by Roger Montgomery Posted in Market commentary.

• save this article
• POSTED IN Market commentary

The increase in corporate debt in the US has mostly been deployed on financial engineering – share buybacks (at expensive multiples) and Mergers & Acquisitions (at expensive multiples). Precious little has been employed for productive use.  And given the aggregate US corporate debt has a percentage of GDP at more than 380 per cent and cash flows as measured by EBITDA have been declining since their peak in 2010, it suggests there is little capacity to borrow more to fund growth projects.

continue…

by Roger Montgomery Posted in Market commentary.

• 2 Comments
• save this article
• POSTED IN Market commentary

by Roger Montgomery Posted in Market commentary.

• 1 Comments
• save this article
• POSTED IN Market commentary

Companies globally are using money for overpriced buybacks and inorganically-funded dividends.  The result will be very low or negative returns to shareholders.  It’s money for ‘nothing’. continue…

by Roger Montgomery Posted in Investing Education, Market commentary.

• 6 Comments
• save this article
• POSTED IN Investing Education, Market commentary

Blenheim Partners have summarised the senior appointments and Board movements across the market for the month of May.

Please click here to read the movements by sector for May 2016.

For more information, contact Blenheim Partners, Clare McKenna on +61 2 9253 0951 or at clare.mckenna@blenheimpartners.com.

by Roger Montgomery Posted in Market commentary.

• save this article
• POSTED IN Market commentary

History is riddled with the remains of empires whose leaders failed to understand the revolution that took place beneath them. continue…

by Roger Montgomery Posted in Insightful Insights, Market commentary.

• 14 Comments
• save this article
• POSTED IN Insightful Insights, Market commentary

Back in April 2013 when discussing government resistance to borrowing we wrote the following: continue…

by Roger Montgomery Posted in Insightful Insights, Market commentary.

• 12 Comments
• save this article
• POSTED IN Insightful Insights, Market commentary

I want to talk about Donald Trump.  We marvel that such extreme views and statements can receive acceptance in the US but the reason we have this view is because our media follows the US east and west coast media, which caters to the upper middle class who know very little of the values, fears and aspirations of the hard working and less privileged majority of the USA.  We should not underestimate the possibility of Trump as president. continue…

by Roger Montgomery Posted in Insightful Insights, Market commentary.

• 2 Comments
• save this article
• POSTED IN Insightful Insights, Market commentary