Hanging Ten 11/12/2012
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
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garry howlett
:
Hi Roger,
Is there any chance you can write an article on what drives a share market higher in a low growth global economy. For instance we have the DAX at 4 year highs, but bunds continue to rise and latest data shows Germany s unemployment rising and the economy could go into a reccession or minimal growth at best. The periphery is in a depression, and China s growth is slowing. It makes sense that future earnings of companys will be muted at least in the short term..Is it the chase for yield in a low interest rate environment thats pushing markets higher?? Or is the mkt becoming complacement.
many thanks for all that comes from the table of knowledge at the montgomery fund.
Roger Montgomery
:
thank Garry,
will consider it. a quick response is loose monetary policy (QE, bond purchases for example).
Andrew Legget
:
You raise some very good points about population size and growth and the impact this will have on the economics of Television companies. It also raises another problem, unlike in retail when you can become successful with a low price platform, this doesn’t work with television stations.
TV in my opinion is a high cost business, yes you can try and limit costs and be more efficient (and you always should) but you can’t make a business strategy around it.
Televisions product is access to its viewers for advertisers. To do that, it needs to attract viewers and to do that you need exciting shows which unfortunatley costs a lot of money.
Not to mention that there is so much competition with TV these days, pay TV for starters, social networks, radio etc.
I just don’t see anything attractive in the idea of investing in free to air TV, i’ll leave it, like airlines and sporting teams, as a play thing for billionaires.
Roger Montgomery
:
Good points Andrew.