Market commentary

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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In recent years, there’s been a growing trend to look beyond our share market in order to generate above-average returns. This is borne out in a report by Morningstar that highlights a noticeable swing to international equities, alternative funds, private equity and commodities. continue…

by Scott Phillips Posted in Investing Education, Market commentary.

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As we head into another reporting season, we have taken a quick look at recent trading updates from companies and what this might tell us about what to expect from results. continue…

by Stuart Jackson Posted in Editor's Pick, Market commentary.

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The Dalai Lama has famously counselled that we should all “Choose to be optimistic, it feels better.” Unfortunately, many broker analysts have taken his sentiment to heart, producing earnings forecasts for 2016 and 2017 that we think will end in disappointment. continue…

by Stuart Jackson Posted in Market commentary.

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Traditionally, a rising stock market means an improving economy, while a rally in Government bonds means a worsening one. Which one to believe, and why?

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by Roger Montgomery Posted in Market commentary.

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Michael Mauboussin is one of the world’s leading investment strategists. His recent paper focuses on how to anticipate revisions in expectations, which he regards as the key to generating attractive investment returns. We’ve provided a link to his analysis, which we think is critical reading for every serious investor. continue…

by Roger Montgomery Posted in Market commentary.

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