Market commentary

We often see the market jumping at shadows. Take the recent weakness in the share price of McMillan Shakespeare (ASX: MMS).  Given the absolute and ‘in writing’ promise by both Abbott and Hockey that changes to fringe benefits tax for salary packaging were off the table, we have been miffed by the swirling rumours that there would be changes in the budget detrimental to MMS. continue…

by Roger Montgomery Posted in Insightful Insights, Market commentary.

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Chatting to Ross Greenwood on Radio 2GB on Tuesday April 8, I talk about home ownership and the Baby Boomer generation, and the dynamics that will play out between the two over the next few years. Listen here.

by Roger Montgomery Posted in Market commentary.

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We were interested recently to see Jeremy Grantham add his view to the “bubble or no bubble” debate. In a typically thoughtful contribution, Jeremy has set out a test for what constitutes a bubble and determined objectively that equity valuations currently do not meet that test. continue…

by Roger Montgomery's Team Posted in Market commentary.

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As a follow-up from our last post on Seth Klarman’s warning about impending asset price bubble, we found the below graphic that highlights an increasing amount of capital being raised by lower quality companies, rather interesting. (You can view the original post on ZeroHedge, here).

by Roger Montgomery Posted in Market commentary.

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Over the weekend, journalist, leading economist and fellow fund manager Christopher Joye penned a profile article for the Australia Financial Review. We’re republishing it here, as opposed to just our usual press section, because we think it encapsulates exactly what it is we are attempting to do here at Montgomery Investment Management.

The missionary zeal of value investor Roger Montgomery

by CHRISTOPHER JOYE continue…

by Guest Author Posted in In the Press, Market commentary, Montgomery News and Updates.

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As we draw the curtains on 2013, we thought it would be interesting to look back at the three most popular stories from the year. They are… continue…

by Roger Montgomery Posted in Market commentary.

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My kids all played this game at the Montgomery residence when they were very young. We’d line up all manner of items next to a bowl of water and the kids had to think about whether the item would float or sink. Heavy pieces of wood were always fun because despite their weight, they floated.

That surprised look must also be on the faces of those who purchased shares in some of the recent wave of floats. continue…

by Roger Montgomery Posted in Companies, Market commentary.

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Many investors will have noticed that, after a number of dry years, the market is suddenly awash with Initial Public Offerings (IPOs). Given the flood of potential opportunities, what are some of the things investors should bear in mind when considering whether or not to participate? continue…

by Roger Montgomery Posted in Market commentary.

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In this interview with Ticky Fullerton on ABC1’s The Business, Roger talks about upcoming investment opportunities. With floats of all sizes and from all sectors, the IPO market is set to take off. But what about the prospect of the US defaulting on its debt? Find out what Roger thinks.

by Roger Montgomery Posted in Market commentary.

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Mr Andrew Robb was on the front page of the Australian Financial Review on Wednesday as the new minister for Trade and Investment.

Now, I reckon most of us at Montgomery lean a little to the right. We certainly believe business is an important engine of our nation and a very important source of prosperity (if ‘prosperity’ is measured by how much stuff we can afford to buy). Personally, according Vote Compass, I sit squarely in the middle, which might explain why I don’t believe that economists got it right when they decided to use consumption as a proxy for ‘happiness’.

That aside, we know that the LNP is supportive of big business. I mentioned as much on the ABC this week with Ros Childs and Ticky Fullerton. Their logic is simple; big business can employ the most people quickly and make all the economic performance measures such as employment and GDP look good. Sadly this short-term window dressing will ultimately produce an emperor with no clothes. continue…

by Roger Montgomery Posted in Economics, Market commentary.

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