Market Valuation
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MEDIA
Ausbiz – the everything boom
Roger Montgomery
October 3, 2025
Yesterday on Ausbiz with Juliette Saly, I discussed why record-high markets may carry more risks than opportunities. While the artificial intelligence (AI) boom has powered enthusiasm, I cautioned that valuations across the broader market are now at unprecedented levels, with all companies effectively being priced as winners – something history shows is unsustainable. continue…
by Roger Montgomery Posted in Market commentary, Market Valuation, TV Appearances.
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Historic highs, hard truths – protecting your wealth in 2025
Roger Montgomery
October 2, 2025
In this week’s video insight I take a closer look at record stock markets, what’s driving them to new highs, and what that might mean for investors. The S&P 500 is trading at historic levels on measures such as price-to-earnings and price-to-book ratios, with much of the enthusiasm powered by the artificial intelligence (AI) boom. Companies are spending billions on cloud, semiconductors and infrastructure, while revenues are still catching up. It’s an exciting period of innovation, but also one where history reminds us markets often price in future growth well before it materialises. continue…
by Roger Montgomery Posted in Aura Group, Digital Asset Funds Management, Market commentary, Market Valuation, Video Insights.
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Does winning the AI race still require massive spending?
Roger Montgomery
February 11, 2025
The artificial intelligence (AI) arms race shows no signs of slowing, and this week’s fourth quarter results announcement by Google, owned by Alphabet Inc. (NASDAQ:GOOG), suggests that significant investment is still seen as a necessity – especially when it comes to powering the next generation of AI models. Following the release of China’s DeepSeek, the question is not only whether the hefty spending is sustainable, but whether it truly gives U.S. tech giants the edge they’re hoping for? continue…
by Roger Montgomery Posted in Market Valuation, Technology & Telecommunications.
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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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- 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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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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- POSTED IN Market Valuation
