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ASX (ASX:ASX) is a high-quality market infrastructure business with strong competitive advantages across listings, cash equities, derivatives, clearing and settlement and data services. Historically, these businesses generated attractive margins and relatively resilient earnings but the investment case deteriorated as years of underinvestment in technology became increasingly apparent. The most visible failure was the original CHESS (Clearing House Electronic Subregister System) replacement program, which was abandoned in 2022 after significant delays and write-offs, while subsequent operational incidents and regulatory scrutiny further damaged confidence in management and execution. The company also went through considerable leadership turnover with the most recent appointment being ASX’s third CEO in relatively quick succession. Continue…

by Sean Sequeira Posted in Editor's Pick, Feature Article, Financial Services, Market commentary, Market Valuation, Popular, Stocks We Like.

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In my recent article for The Australian, I explore the growing competition for capital between the U.S. government and the artificial intelligence (AI) boom. As government borrowing and AI infrastructure spending accelerate, the resulting pressure on bond yields could reshape the investment environment, with important implications for equity valuations and long-duration growth stocks.

Download the article here: A new battle for cash has begun – and it could sink stocks

by Roger Montgomery Posted in Economics, Editor's Pick, In the Press, Insightful Insights, Investing Education, Market commentary, Popular, Technology & Telecommunications.

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In my article for The Australian, I explore why global bond yields continue to rise while equity markets remain largely unfazed. From persistent inflation and geopolitical tensions to growing government debt and artificial intelligence (AI) infrastructure spending, several forces are keeping interest rates elevated. I also examine whether expectations of AI-driven earnings growth can continue to support share prices, or whether higher borrowing costs will eventually weigh on equity valuations.

Download the article here: High interest rates and bond yields threaten global sharemarket rally Continue…

by Roger Montgomery Posted in Economics, Editor's Pick, In the Press, Insightful Insights, Market commentary, Market Valuation.

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In my latest article for The Australian, I look at the growing pressure facing Australian homeowners as rising living costs, higher interest rates and mortgage repayments stretch household budgets. With mortgage stress at its highest level in 18 years, I explore the economic pressures behind the figures and what they could mean for households if conditions remain challenging.

Download the article here: Homeowners pay the high price of Labor’s fiscal mismanagement Continue…

by Roger Montgomery Posted in Economics, Editor's Pick, In the Press, Market commentary, Property.

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In my article for The Australian, I look at why many Australians are feeling worse off despite the economy continuing to grow. Rising living costs, expensive housing and weak productivity are making it increasingly difficult for households to get ahead.

I also discuss how government decisions around housing, taxation and spending may be adding to these pressures, with younger Australians in particular facing higher rents, falling affordability and greater financial strain.

Download the article here: Labor’s economics making us all poorer Continue…

by Roger Montgomery Posted in Economics, Editor's Pick, In the Press, Market commentary.

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At a conference in October 1975 at the Winter Gardens in Blackpool, UK, Margaret Thatcher critiqued socialism.  Despite her insights 51 years ago, left-leaning leaders today still try and fail to make socialism work.

From Canada under Justin Trudeau, and New Zealand under Jacinda Ardern, to the U.K under Keir Starmer, and even the U.S. under Biden, nations have elected officials to enact ideological promises with disastrous fiscal, economic and social consequences.

While no one’s policies are perfect and many were flawed, let Margaret Thatcher’s criticism of the socialist agenda 51 years ago be a reminder to our voters today that we can’t tax our way to prosperity.  Prosperity requires financial discipline, enterprise, affordable energy, productivity, and investment. Continue…

by Roger Montgomery Posted in Market commentary.

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I joined Juliette Saly on Ausbiz to discuss the growing risks surrounding the artificial intelligence (AI) boom and whether the billions being invested in infrastructure can deliver sustainable returns. We explored the industry’s reliance on debt-funded hyperscalers and venture capital-backed startups, and how a slowdown in funding could trigger a domino effect across the sector. We also discussed the disappointing Firmus IPO, CoreWeave’s recent share price decline, and the risk of excess data centre capacity if demand fails to meet expectations.

Watch here: Too much Ai, too little return. Continue…

by Roger Montgomery Posted in Economics, Global markets, Insightful Insights, Investing Education, Market commentary, Market Valuation, TV Appearances.

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In my article for Firstlinks, I explore whether the extraordinary investment boom in artificial intelligence (AI) could ultimately end in financial pain for investors, even if the technology itself transforms society. History shows that revolutionary technologies can deliver enormous benefits while destroying the capital of those who overpaid to build them. With Big Tech committing hundreds of billions of dollars to AI infrastructure, costs rising, competitive moats weakening and the price of intelligence rapidly falling, the pressure to generate adequate returns is mounting. As cash flows come under strain and the AI trade begins to unwind, investors are left with a critical question: can the hyperscalers generate enough profit to justify the scale of spending, or is the AI boom following a familiar historical path?

You can read the article here: Firstlinks – Will AI destroy investor capital? 

by Roger Montgomery Posted in On the Internet.

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In my latest article for The Australian, I examine the growing tax burden on Australian businesses and individuals, and the implications for investment, productivity and economic growth. With government revenue and spending continuing to rise, I argue that sustainable prosperity depends on encouraging private enterprise, rewarding innovation and supporting wealth creation, rather than relying on higher taxation and redistribution.

Download the article here: Labor is taxing the goose that lays the golden egg Continue…

by Roger Montgomery Posted in Economics, In the Press.

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