Every day, I am met with articles quoting commentators telling me that the market is high and, therefore, on the precipice of a correction. Let’s get one thing straight – markets don’t fall just because they are high. They can stay high and continue upwards for a long time. It is also a mistake to believe that a catalyst is required to cause the market to crash. Investors, to this day, debate the trigger for the 1987 crash. Continue…

by Roger Montgomery Posted in Economics.

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In this video, Brett Craig from Aura Credit Holdings addresses the myth that private credit is illiquid and funds are locked until maturity. He explains that the Aura Private Credit Income Fund offers monthly liquidity windows, allowing investors to redeem funds from available cash or loan repayments. Continue…

by Roger Montgomery Posted in Aura Group, Video Insights.

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Following the election of Donald Trump as the next U.S. president, a number of market analysts are crunching the numbers on what, if anything, it means for markets. Given there is an election every four years and most investors are investing over a longer time frame than that, who is in charge should matter relatively little. We will examine what might matter more, later in this post. Continue…

by Roger Montgomery Posted in Economics.

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The Reserve Bank of Australia (RBA) is fighting the government sctor where aggregate expenditure has jumped from a long-term average of 22.5 per cent of gross domestic product (GDP) for the five decades from 1970 to a forecast 28 per cent of GDP. “Underlying inflation” is running at 3.5 per cent, and the strength of public spending has been underappreciated, assisting aggregate demand and keeping unemployment low.    

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by David Buckland Posted in Economics.

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I was blown away when I first heard the most popular use case for generative artificial intelligence (AI) in 2024, is a chatbot called a companion bot. Romantic AI is one example of a company providing AI girlfriends or AI partners powered by algorithms designed to interact with users on an intimate level. Other examples include Character AI, whose founders are now at Google (NASDAQ:GOOG), whose technology lets users chat and role-play with real-life or fictional characters, including Queen Elizabeth and Draco Malfoy (of Harry Potter fame), or create customized AI companions. Continue…

by Roger Montgomery Posted in Companies, Technology & Telecommunications.

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Since 2022, we have predicted that small cap stocks, especially those representing innovative businesses with pricing power, would do well in an environment of disinflation and positive economic growth.  Continue…

by Roger Montgomery Posted in Editor's Pick, Small Caps.

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One of the most frequently asked questions by investors following Trump’s election victory is: what sectors will do well? While much remains unknowable about Trump’s second term, his “promises made, promises kept” statement during his victory speech suggests not all is a mystery.  Continue…

by Roger Montgomery Posted in Economics, Editor's Pick, Market commentary.

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That race toward artificial intelligence (AI) dominance we’ve all been hearing about has prompted some of the world’s largest technology companies – Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META) platforms included – to ramp up capital expenditures (CapEx) to unprecedented levels. Continue…

by Roger Montgomery Posted in Companies, Economics.

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