Market Valuation
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Ignore the tantrums and focus on what matters
Roger Montgomery
April 30, 2024
Kids are regularly disappointed – often vocally – when they don’t receive what they want. When those kids become investors, the tantrums they throw can be seen in market reactions to their disappointments. And many investors, forecasters and commentators are predicting a tantrum amid changing expectations for rate cuts in 2024. continue…
by Roger Montgomery Posted in Economics, Market Valuation.
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- POSTED IN Economics, Market Valuation
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How the Australian Eagle Trust Long Short Fund has achieved its outperformance*
David Buckland
April 20, 2023
Australian Eagle Asset Management, one of Montgomery’s four business partners, launched the Australian Eagle Trust Long Short Fund on 1 July 2016. It is effectively a 150/50 Fund, “long” its best 25-35 stocks with an average weight of around 4.5 per cent, and “short” 12-25 stocks with an average weight of around 2.5 per cent. The Fund is appropriate for investors with a “Very High” risk and return profile. continue…
by David Buckland Posted in Companies, Editor's Pick, Market Valuation, Montgomery News and Updates.
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It’s time to take advantage of share price falls
Roger Montgomery
May 3, 2022
The price-to-earnings ratios of many quality businesses have fallen sharply over the last six months. In many cases, the falls were justified. Now that valuations have dropped, I believe investors have a far better chance of making attractive returns. The proviso, of course, is that you buy businesses that grow their earnings. continue…
by Roger Montgomery Posted in Economics, Market Valuation.
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The Fundamentals of Investing 101
Roger Montgomery
November 25, 2020
Value Investing was developed in the 1920s at Columbia Business School by finance adjunct Benjamin Graham. Roger recently recorded an educational video for investors who want to understand the fundamentals of a quality business and also what might be important in terms of value investing. In this 45-minute fundamental investing 101 session, Roger presents you some of the basic elements of identifying a quality business, finding that quality business at a rational price and how to identify companies with the ability to generate a high rate of return on equity over a long period of time. continue…
by Roger Montgomery Posted in Editor's Pick, Investing Education, Market Valuation.
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Beware wealth destroying capital raisings
Roger Montgomery
April 9, 2020
The stock market sell off validated an internal decision to abstain from the bubble in the months leading up to January 2020, but it wasn’t the only forecast that came to pass. We also discussed at length the likely prevalence of deeply-discounted capital raisings by companies needing to shore up balance sheets, to weather the COVID-19 lockdowns or simply be rescued from insolvency. continue…
by Roger Montgomery Posted in Companies, Market Valuation.
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- POSTED IN Companies, Market Valuation
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WHITEPAPER
INTEREST RATES, THE BEST IT GETS. IT’S TIME TO DEPLOY CASH
Curious about the investment landscape in 2024? It appears that the current market offers a plethora of enticing opportunities for investors, a rarity not experienced since pre-pandemic times. This unique scenario stems from a confluence of factors, including elevated yields and comparatively rational equity valuations.
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What really propelled the Aussie market in 2019?
Andreas Lundberg
January 20, 2020
Over the past 12 months, the soaring Australian share market has made most local investors feel pretty smart. However, for most part, it was falling interest rates, rather than rising company earnings, that kept the rally going. The question now is: how much longer can this bull market go? continue…
by Andreas Lundberg Posted in Market commentary, Market Valuation.
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Six reasons to be wary right now
David Buckland
December 11, 2017
This year we’ve seen the most synchronized expansion of global economic activity since the GFC. It’s certainly helped propel share markets. But with little reaction from the bond market, the goldilocks scenario – not too hot, not too cold – is being priced for perpetuity. Is this realistic? I don’t think so. I can think of six reasons to be wary right now. continue…
by David Buckland Posted in Market Valuation.
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Cash’s hidden value: it’s an option over every asset class
Roger Montgomery
June 1, 2016
What’s going on … is there nothing to discuss? We recently held our shortest investment committee meeting. I timed it. It went for 22 minutes. What gives? continue…
by Roger Montgomery Posted in Investing Education, Market Valuation.
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Market valuation
Roger Montgomery
May 4, 2016
We aren’t fond of correlation analysis and curve fitting as a basis for investing so you should immediately be careful about what you conclude from the following insight. continue…
by Roger Montgomery Posted in Insightful Insights, Market Valuation.
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Investors fear unknown as central banks lack firepower
Roger Montgomery
April 1, 2016
Since the global financial crisis, there have been over 600 interest rate cuts around the world and, according to one investment bank, more than $US12 trillion of bond purchases. Yet economic growth has not been stimulated enough to see anything resembling an economic recovery. What does it all mean?
You can read all of the team’s press articles through browsing our media library, view more articles here.by Roger Montgomery Posted in Insightful Insights, Market Valuation.
