Humans are hard-wired, it seems, with an affinity for narrative over data.  When the equity market falls over the course of a day, for example, we want an explanation for what happened.  Something vague and unprovable like “profit taking” will do nicely.  This explanation offers no real insight into the market, or what it might do tomorrow, but it accounts for the behaviour in familiar and immediate terms, and any explanation is preferable to a shrug of the shoulders or a dry, statistical account of market variability.  Not as honest perhaps, but certainly more comforting. Continue…

by Tim Kelley Posted in Investing Education.

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As many of you know, we have long been supporters of the REA Group (ASX: REA) story with the company a longer term holding in both our domestic and global funds.

Initially we were attracted to the very high rates of return on equity and little or no debt – a function of the company’s dominant position and its ability to charge higher prices even after a decade of competitors offering the same service for free. Continue…

by Roger Montgomery Posted in Companies, Property.

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As technological innovations increasingly edge into the workforce, many people fear that robots and machines are destined to take jobs humans have held for decades.  Over the last two decades, automation has replaced blue collar jobs in manufacturing and warehousing, and now white collar jobs are increasingly under threat. Continue…

by David Buckland Posted in Manufacturing.

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by Roger Montgomery's Team Posted in Old Content.

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The major banks recently announced they will no longer charge fees to customers using their ATMs, even if they are accessing an account with another bank. This is a pretty big change in policy, and carries some downside risks. So, why did they do it, and what does it mean for investors? Continue…

by Stuart Jackson Posted in Financial Services.

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by Roger Montgomery's Team Posted in Old Content.

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According to the Bank of International Settlements, there are now more margin loans supporting buying in the US stock market than during the tech boom of 1999/2000. And those loans are chasing an ever-narrowing band of tech stocks on the back of a ‘fear of missing out’. This is just one of the many red flags making us nervous right now. Continue…

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

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In this interview with Ross Greenwood, Roger Montgomery discusses Telstra, Myer and current warnings in the market including an increasing concentration of money in a narrowing band of companies.

by Roger Montgomery Posted in Radio.

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