Market commentary

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.

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

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.

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

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.

• 2 Comments
• save this article
• POSTED IN In the Press, Market commentary, Montgomery News and Updates

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.

• save this article
• POSTED IN Market commentary

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.

• 12 Comments
• save this article
• POSTED IN Companies, Market commentary

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.

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

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.

• save this article
• POSTED IN Market commentary

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.

• 31 Comments
• save this article
• POSTED IN Economics, Market commentary

Lest you read Tim’s comments below and err by drawing the incorrect conclusion that we are against good financial advice and planning…Keep in mind, every industry has their good and bad. Sadly, because the bad get all the press so it is easy to conclude from reading the papers and watching the news that an industry as a whole is rotten. This, in my personal experience, is not true. I have met a great many planners with a passion for their clients and a strong spirit of independence. I have met those who have left their firms when they believed their clients needs were not being best served. The standard of research I have witnessed is extraordinary and the investment being made in systems and processes is in inspiring. I am delighted to be an external advisor on the investment committee of one such group…Roger Montgomery

Back to Tim…

Early this morning I went for a bike ride with a former colleague from the investment banking industry (let’s call him “Bud” for short). We rode at what is known as “conversational pace”, and chatted about a range of things along the way. continue…

by Tim Kelley Posted in Market commentary.

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

After 27 seasons at the helm of Manchester United Football Club, Sir Alex Ferguson has announced his retirement. Winning thirteen Premier League titles, five FA Cups and 2 UEFA Champions League titles in the ‘up-this-year, out-the-next’ world of professional sport is an extraordinary result.
continue…

by David Buckland Posted in Market commentary.

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