The latest e-commerce report from Australia Post simultaneously reinforces what we know about the ineffectiveness of monetary policy and recent Commonwealth Bank household spending insights reports. 

The headline data from Australia Post reveals Australians reduced their online spending by 1.2 per cent in calendar year 2023, compared to the year before, to $63.6 billion.  Continue…

by Roger Montgomery Posted in Economics.

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While all fingers are pointing to an Australian politician being guilty of spying against Australia and allegedly for the Chinese, should we also be pointing the finger at Chinese-made electric vehicles (EVs)?  Continue…

by Roger Montgomery Posted in Editor's Pick, Technology & Telecommunications.

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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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