Search Results for: property
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Why weakness in Chinese property doesn’t support increasing iron ore prices
Andreas Lundberg
March 10, 2022
In May 2021, the iron ore price peaked at USD$238/tonne before plunging to USD$80 last November. Since then, the price has rebounded around 75 per cent. But is this rebound warranted? I don’t think so – if you consider the slowdown in Chinese property construction, which accounts for about 42 per cent of Chinese steel demand, and high iron ore inventories at Chinese ports. If fundamentals mean anything, the iron ore price is about to fall again. Continue…
by Andreas Lundberg Posted in Energy / Resources.
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Is it simply greed that motivated Putin to invade the Ukraine?
Roger Montgomery
March 7, 2022
In 2015, Professor Karen Dawisha – a renowned Russian scholar – published a book titled Putin’s Kleptocracy: Who Owns Russia? It details Russia’s politically driven system of economic predation, which has resulted in the greatest inequality[1] of any developed nation. Her book documents numerous cases of government theft, and provides the context for Russia’s invasion of the Ukraine. Continue…
by Roger Montgomery Posted in Market commentary.
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Why sky-high property prices are here to stay – for now
Roger Montgomery
March 4, 2022
When it comes to explaining our booming property market, one thing stands out: access to cheap loans. So I’m sure many property owners would have breathed a sigh of relief this week when the Reserve Bank of Australia confirmed the historically low overnight cash rate of 0.1 per cent would remain unchanged. Continue…
by Roger Montgomery Posted in Editor's Pick, Property.
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Goodman Group’s profit doubles
Roger Montgomery
February 18, 2022
Following on from material swings in the fortunes of property developers and managers including Dexus (ASX:DXS) and Vicinity Centres (ASX:VCX), Goodman Group (ASX:GMG) reported a doubling in profit for the first half of FY22. The Goodman Group result was very strong. Continue…
by Roger Montgomery Posted in Companies, Stocks We Like.
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Why it’s time to capitalize on the carnage in tech stocks
Roger Montgomery
February 9, 2022
The current equity correction has taken a lot of the froth out of the market. But caught up in the carnage have been a number of high quality companies with years of growth ahead. Which is why I think this could be a very good time for investors to take a look at some of these businesses, including Pro Medicus, Megaport and REA Group. Continue…
by Roger Montgomery Posted in Companies, Editor's Pick, Stocks We Like.
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The one thing needed to cut inflation
Roger Montgomery
February 8, 2022
A number of people have asked me if I think inflation can be contained, and if interest rates can be kept at levels that don’t imperil the economy and impact millions of mortgagees. To my mind, it comes down to one vital step the federal government will need to take. Continue…
by Roger Montgomery Posted in Market commentary.
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A closer look at REA Group’s half year results
Roger Montgomery
February 7, 2022
At $135.00 on 27 January, REA Group’s (ASX:REA) share price had fallen almost a quarter from its high of $176.81 in November 2021. The move demonstrates even high-quality company shares can succumb to the vagaries of sentiment, especially when investors abandon long-term investing plans in favour of short-term fears about where share prices might land tomorrow or next week. Continue…
by Roger Montgomery Posted in Companies, Editor's Pick, Property, Stocks We Like.
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The Montgomery Fund’s key drivers of performance in 2021
Joseph Kim
January 19, 2022
In this week’s video insight Joseph discusses the key drivers of The Montgomery Fund’s performance for calendar year 2021. Overall, 2021 was a successful year for The Montgomery Fund. The total return of 25.1 per cent after fees represented an outperformance of 7.6 per cent versus the broader S&P/ASX 300 Accumulation Index, and included two distributions which collectively accounted for 4.2 per cent of the return. Continue…
by Joseph Kim Posted in Editor's Pick, Montgomery News and Updates, Stocks We Like, Video Insights.
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A review of markets in 2021
Joseph Kim
December 17, 2021
2021 is almost in the books, and it’s once again time to have a quick review of how markets fared. While noticeably less “historic” than 2020’s record breaking year in terms of market volatility and extraordinary events, there were enough developments to keep market participants on their toes. (As an aside, it’s possible the 24 hour news cycle, rapid digestion of information and short-termism will mean volatility of returns will remain a feature going forward). Continue…
by Joseph Kim Posted in Market commentary.
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M&A activity explodes in 2021!
Andreas Lundberg
December 15, 2021
A couple of years ago, I wrote an article highlighting the steep uptick in M&A activity in 2018 involving companies in Australia with 109 announced transactions with a total transaction value of $92 billion when applying a cut-off of $100 million in transaction value. As our financially aware readers are probably aware, there has been significant M&A activity in the Australian market over the last year and as we approach the end of the year, I thought it would be interesting to see how 2021 compares to previous years. Continue…
by Andreas Lundberg Posted in Companies.
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New Zealand cash rates – the canary in the coal mine?
David Buckland
November 29, 2021
My son, Angus, ventured into the Sydney residential market at the beginning of the year acquiring a small apartment, with what I considered to be an enormous loan from one of the Big Four. At the time the fixed four-year home loan rate was around 1.95 per cent per annum. Today, the advertised rate has jumped 1.0 per cent per annum to around 2.95 per cent. This reflects the Australian four-year Government Bond yield moving up from 0.20 per cent at the beginning of 2021 to the current 1.32 per cent. Continue…
by David Buckland Posted in Global markets, Market commentary.
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The 3 words that tell me this property boom is over for now
Roger Montgomery
November 24, 2021
The key driver for the short and medium-term direction of the Australian property market can be boiled down to just three words: access to credit. And, right now, the conditions for credit access are getting tighter. To my mind, it all points to a property market that is about to lose its froth. Continue…
by Roger Montgomery Posted in Editor's Pick, Property.
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Sydney Board recommends takeover offer at $8.75
Joseph Kim
November 10, 2021
Back in July, the IFM consortium lobbed a full takeover offer for Sydney Airport (ASX:SYD), Australia’s busiest gateway. With the airport about to change hands, here’s why Montgomery Fund’s retained most of its shareholding in SYD throughout the takeover period to date. Continue…
by Joseph Kim Posted in Airlines, Companies, Editor's Pick, Stocks We Like.
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Goodman Group continues to ride the boom in online shopping
Roger Montgomery
November 8, 2021
Australian property company, Goodman Group (ASX:GMG), specialises in industrial sites that cater to the digital economy. And, perhaps predictably – given the past 18 months of retail lockdowns – its share price has done well. The company’s recent trading update was extremely upbeat, announcing higher levels of profitability and expectations for increased earnings for the year ahead. Continue…
by Roger Montgomery Posted in Companies, Editor's Pick, Stocks We Like.
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What a day…
Roger Montgomery
October 18, 2021
Since the COVID-19 crash, we’ve written a number of posts reflecting our view that a boom in Mergers and Acquisitions would continue, that 2022 has all the hallmarks of another positive year for asset prices – particularly quality equities like those owned in both the Montgomery and Polen Funds –and the search for income would prompt a frenzy of acquisition activity in the infrastructure space and among entities producing steady, reliable and even boring income. Continue…
by Roger Montgomery Posted in Companies, Stocks We Like.
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Are booming house prices making us a nation of home loan liars?
Andreas Lundberg
October 7, 2021
When applying for a mortgage, it seems many of us are not honest with our lenders. In fact, according to recent research by UBS, around half of new loans are awarded based on false information. And not only are more people lying on their mortgage application, they are lying far more about their income, cost of living, other assets, and other borrowings. The big question for investors is whether these ‘liar loans’ could have a downstream impact on the lenders. Continue…
by Andreas Lundberg Posted in Property.
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Ever (Not) Grande
Roger Montgomery
September 23, 2021
Investors will have seen the US market falls on Monday (Monday night for Aussie investors) in reaction to the spiralling debt default story that is China’s largest property developer Evergrande. Continue…
by Roger Montgomery Posted in Global markets.
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Why Chinese property worries affect us all
Andreas Lundberg
September 23, 2021
As you’ve probably read, China’s number two property developer, Evergrande, is on the verge of collapse, dragged down by excessive debt and an inability to take on more debt. Evergrande’s woes have helped send the price of iron ore plummeting – not to mention the share prices of our largest miners: BHP, Rio and Fortescue. My concern is that the problems besetting the Chinese property market will have repercussions well beyond the miners and their investors. Continue…
by Andreas Lundberg Posted in Editor's Pick, Energy / Resources, Property.
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How Evergrande the parent hurt Evergrande New Energy
Joseph Kim
September 20, 2021
One thing that has recently caught my eye has been the unravelling of China Evergrande Group – a conglomerate with over 100,000 employees spanning primarily real estate development but also new energy, property services and health amongst other industries. Continue…
by Joseph Kim Posted in Companies.
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Why Centuria Capital is a beneficiary from the flood of liquidity into markets
Stuart Jackson
September 16, 2021
One theme we continue to follow is the impact of the ongoing flood of liquidity being provided to financial markets and the impact it is having on the value and demand for income generating assets. Continue…
by Stuart Jackson Posted in Companies.
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