Market Valuation

In the last decade or so, Australian mobile phone services have risen from 8 million to 30.2 million. Internet penetration has risen from 30 per cent to 89 per cent of households. And, despite unique anti-syphoning legislation, which ensures free-to-air TV gets to broadcast the big sporting events; Pay TV has increased to 30 per cent household penetration (despite being stuck there since 2008), from virtually nothing in 1995. continue…

by Russell Muldoon Posted in Insightful Insights, Market Valuation, Technology & Telecommunications.

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According to The Wall Street Journal: “Tight credit, restrictions on the ownership of multiple homes and an easing of prohibitions on alternative investments overseas have triggered a long-expected downturn in the Chinese residential housing market.” continue…

by Roger Montgomery Posted in Economics, Market Valuation, Property, Tourism.

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One prominent feature of the Australian equity market in the last few years has been strong support for large dividend-paying stocks. The Big Four banks have been particular beneficiaries of this, and have enjoyed share price gains that seemed to go beyond what might otherwise be justified. The first chart below compares the ASX300 (in yellow) with the banks’ sub-index (in pink) for the past 24 months. Bank shareholders have done very well during this period. continue…

by Tim Kelley Posted in Insightful Insights, Investing Education, Market Valuation.

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As you may know by now, we do not believe there is a bubble in stocks or property. We do believe one will form before the next correction. Type ‘bubble’ into the search bar or click here to read our recent observations. continue…

by Roger Montgomery Posted in Market Valuation, Property.

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In September last year, when G8 Education shares were trading for three dollars, we asked: “Is $4.00 unreasonable for G8?”. Seven months later, and with a share price circa 45 per cent higher, we again ask a similar question but this time – is G8 worth more than five dollars? continue…

by Russell Muldoon Posted in Companies, Insightful Insights, Market Valuation.

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In a blow to the rising popularity of stupidity in equity markets, the team at the Capital Markets Cooperative Research Centre (CMCRC) – the organization that has worked closely with Montgomery Investment Management – has concluded high-quality stocks generally outperform low-quality stocks and provide downside protection during times of market volatility. continue…

by Roger Montgomery Posted in Market Valuation, Whitepapers.

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Earlier in the week, an article by Miles Johnson, Hedge Fund Correspondent for the Financial Times, caught our interest. Reporting on Seth Klarman, head of Baupost Group and “one of the world’s most respected investors”, Johnson writes of Klarman’s grave warning of an imminent asset price bubble. The highly regarded value investor (and bestselling author) is quoted as saying: “Any year in which the S&P 500 jumps 32 per cent and the Nasdaq 40 per cent while corporate earnings barely increase should be a cause for concern, not for further exuberance”. Read the article here (if you’re an FT.com subscriber).

by Roger Montgomery Posted in Market Valuation.

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The market has been swinging like a violent pendulum in the past week. One day it’s up, the next it is down. The media have been quick to offer explanations, but all this really does is create noise for investors. continue…

by Ben MacNevin Posted in Insightful Insights, Market Valuation.

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The US S&P 500 Index peaked on 22 May 2013 at 1,687 points. Despite retreating 7 per cent to 1,573 points in the past five weeks, this is 135 per cent above its GFC low. continue…

by David Buckland Posted in Market Valuation.

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by Tim Kelley Posted in Market Valuation, Video Insights.

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