Since rates commenced rising, we have been tracking the consumer closely, waiting for the inflection point where inflation and higher mortgage commitments meet the end of government financial support and savings dry up. Continue…

by Roger Montgomery Posted in Consumer discretionary, Editor's Pick.

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I joined ABC’s The Business to discuss Buy Now Pay Later (BNPL) businesses including AfterPay and Zip. We always thought these companies were mediocre – they were over-valued, with unsustainable growth and increasing competition.

Way back in 2018 I warned investors about the BNPL space and continued to do so in 2019, and 2020, questioning how long the euphoria would last. Fast forward to today, BNPL providers are facing a raft of new regulations. Is their future now even more concerning?

Continue…

by Roger Montgomery Posted in Editor's Pick, TV Appearances.

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The Australian Bureau of Statistics (ABS) has recently reported on various leading indicators that contribute to the Reserve Bank of Australia’s (RBA) monthly monetary policy decisions. The wage price index released last week reported the largest annual increase in wage growth in more than 10 years. The labour market also remains strong. Household spending growth has finally begun to show signs of slowing. Continue…

by Brett Craig Posted in Aura Group.

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With apologies to De La Soul for hijacking the title of one of their hit songs, we discuss here three companies that are currently held in our domestic funds.  All three can be found in the portfolios of The Montgomery Fund and The Montgomery [Private] Fund, managed by Sean Sequeira, Alan Kwan and Daniel Chan. Corporate Travel Management is also held by Gary Rollo and Dominic Rose in the Montgomery Small Companies Fund. Continue…

by Roger Montgomery Posted in Companies, Stocks We Like.

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The following chart pack reveals the material underperformance of U.S. and global small companies against their larger-capitalisation peers. The relative performances are displayed over the last twelve months and the 2023 calendar year to date (YTD). Continue…

by Roger Montgomery Posted in Global markets, Market commentary.

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In this week’s video insight I joined Montgomery’s head of distribution Scott Phillips to discuss two stocks we currently hold in the Montgomery Small Companies Fund including insurance broking, underwriting agency and risk management businesses AUB Group (ASX:AUB) and lithium producer Allkem (ASX:AKE). AUB Group falls into the category of stable compounders, those businesses with defensive growth characteristics. And we think Allkem is very attractive in the lithium sector. Continue…

by Gary Rollo Posted in Editor's Pick, Stocks We Like, Video Insights.

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I joined Ausbiz to discuss what sectors are worth investigating if the U.S. Federal Reserve cuts interest rates this year. While interest rate cuts could matter in the short term, they ultimately won’t impact the returns of active investors who invest in quality growth businesses. Watch the interview: Why technology and small caps could rally strongly

by Roger Montgomery Posted in TV Appearances.

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Since listing in 1999, the share price of REA Group (ASX:REA) – Australia’s leading online property portal – has risen from around 50 cents to around $140. So you’d have been far, far better investing in REA than in the property market that it serves. REA continues to be one of the highest quality businesses on the ASX, and a slightly underwhelming third-quarter trading update has not changed my opinion of the company’s prospects. Continue…

by Roger Montgomery Posted in Companies, Property, Stocks We Like.

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