In this week’s video insight, I discuss the Reserve Bank of Australia’s (RBA) recent decision to maintain current interest rate levels and anticipate the upcoming announcement from the U.S. Federal Reserve (Fed), where no changes are expected. Instead, the focus shifts onto potential indicators regarding future rate cuts. With recent market shifts and economic data influencing expectations, I delve into the broader implications for investors, highlighting the importance of maintaining a long-term perspective amidst short-term economic and financial fluctuations. 
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by Roger Montgomery Posted in Economics, Video Insights.

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It appears investors have finally woken up to the reality about electric vehicle (EV) manufacturers; they are just car companies with car company economics. It was always right to question Tesla’s (NASDAQ:TSLA) inclusion in the Magnificent 7. They are a group of companies that only have share price appreciation in common. However, Tesla has always been a bit of an outlier because it lacked one thing the other six have – pricing power. More about that shortly.  Continue…

by Roger Montgomery Posted in Companies.

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As a low-cost and long-life spodumene producer (spodumene is a raw material used to produce lithium for batteries in your phone, e-bike and electric vehicles (EVs), Pilbara Minerals (ASX:PLS) is one of the highest quality single commodity miners on the ASX. The share price has been punished recently, with the spodumene price falling from over U.S.$8,000 per tonne to below U.S.$1,000 per tonne in just over 12 months.   Continue…

by Daniel Chan Posted in Companies, Editor's Pick, Stocks We Like.

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Retail stocks were on the nose for some time amid fears of recession, the impact of rising interest rates, the cost-of-living crisis and inflation’s impact on the cost of doing business. 

The recent HY24 reporting season, however, revealed much of the fear was misplaced. Aggregate revenue growth tended to beat estimates despite moderating slightly. Meanwhile, even though earnings before interest, tax, depreciation and amortization (EBITDA) margins compressed as the cost of doing business grew, this was somewhat offset by gross profit growth. Companies were able to pass on higher prices and more, and in the face of those price increases, consumers were surprisingly resilient.  Continue…

by Roger Montgomery Posted in Companies, Economics.

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New spending figures published by the Association of Superannuation Fund of Australia (ASFA) define what it means to be comfortable in retirement. And while their numbers are well above the current age pension payments, I am not sure even those elevated numbers realistically measure up to what many, if not most, people would describe as comfortable.  Continue…

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

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With all the talk about a bubble in equities at the moment (I think we are a long way from the euphoria that typically defines bubbles), I thought it would be prudent to take a look at the recent forecasting track record of some of the biggest names in funds management and investment banking.  Continue…

by Roger Montgomery Posted in Market commentary.

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Predicting private credit will become a much more important part of investors’ portfolios and an asset class in its own right has been easy. Who wouldn’t want higher yields with low volatility? And as the oldest boomers’ approach 80 years of age, many are turning their backs on the stock market’s volatility, preferring regular income and total returns that, in some cases, have beaten the stock market.  Continue…

by Roger Montgomery Posted in Global markets, Polen Capital.

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According to CoreLogic, the median dwelling price for Australia is $760,000; the median dwelling price in the eight capital cities (6 States and 2 Territories) is $836,000, ranging from Sydney ($1.122 million) to Darwin ($522,000), whilst the median dwelling price for Australia’s regional towns is $605,000.  Continue…

by David Buckland Posted in Economics, Global markets, Property.

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