Today’s investors are focused on interest rates, inflation and earnings. A small group are thinking about the issues that could surface in two or three years, such as China annexing Taiwan and the consequences of artificial intelligence’s (AI) birth. An even smaller group are thinking about what lies beyond that. Continue…

by Roger Montgomery Posted in Economics, Property.

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Nick Scali (ASX:NCK) released a trading update along with first half earnings guidance. Most analysts conclude that the update was a downgrade to the first-half consensus net profit after tax (NPAT); longer-term investors will look beyond the short-term effects of higher freight charges. Continue…

by Roger Montgomery Posted in Companies, Editor's Pick, Small Caps, Stocks We Like.

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In this short video I was joined by Brett Craig, Director at Aura Credit Holdings, our partner in private credit for a brief discussion on managing risk through diversification in investment funds. I introduce the concept by addressing a common myth that private credit may not be diversified enough. Brett explains the approach with the Aura Private Credit Funds which focuses on diversifying risk across various industries, geographies, and lenders.   Continue…

by Roger Montgomery Posted in Aura Group, Video Insights.

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There comes a point in our lives where we are exposed to the thought or process of retiring. It could come one day when we open our annual superannuation statement. Or it could come when a parent or workplace mentor announces their intentions to hang up the tools and move into the next phase of life… Continue…

by Michael Gollagher Posted in Companies, Property, Small Caps, Stocks We Like.

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In yesterday’s interview with Ausbiz, we discussed the rising importance of private credit as a key asset class, with projections indicating it could double by 2028 to nearly $2.8 trillion. I explained that traditional 60/40 portfolios are becoming less effective due to the increased correlation between bonds and equities. By reallocating part of the fixed income exposure to private credit, investors can achieve higher returns and fewer losing years. A portfolio mix of 40 per cent equities, 30 per cent fixed income, and 30 per cent private credit not only enhances performance but also reduces volatility, providing greater portfolio stability without compromising equity exposure. Continue…

by Roger Montgomery Posted in Aura Group, TV Appearances.

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Last night on ABC Nightlife, I joined Philip Clark to discuss the challenges of predicting market turning points. We also explored the concerning state of China’s economy, where plummeting property prices and Xi Jinping’s attempts to shift towards a consumption-driven model akin to those of Australia, the U.S. and Europe could have significant impacts on Australia due to our strong trade ties. Lastly, we touched on Australia’s housing market, where both property prices and rents have surged dramatically since the COVID-19 pandemic.

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by Roger Montgomery Posted in Radio.

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One of the significant shifts coming from artificial intelligence (AI) is associated with the incredible demand for data centre power. When analysing rack power density, or the power draw of a single, fully populated rack measured in kilowatts (KW), a typical centre without AI demand has a rack power density of 6-12 kilowatts from central processing unit (CPU) based servers. Continue…

by David Buckland Posted in Technology & Telecommunications.

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Warren Buffett once said: “We look for three things when we hire people. We look for intelligence, we look for initiative and we look for integrity. And if they don’t have the latter, the first two will kill you.” Continue…

by Roger Montgomery Posted in Consumer discretionary.

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