Popular Articles

First, it was DeepSeek, and now it’s tariffs. Investors will need to endure more volatility, while those hoping for cheaper prices to enter the market might have their wish granted this week.

You might not think Trump’s imposition of tariffs on imports from Mexico, Canada and China has anything to do with your Australian equity portfolio but think again. The next few days could see markets move materially. Continue…

by Roger Montgomery Posted in Economics, Market commentary.

• 2 Comments
• save this article
• 2
• POSTED IN Economics, Market commentary.

Qantas (ASX:QAN) has posted a significant rise in half-year profits, demonstrating continued momentum in the airline’s post-pandemic recovery. The company reported an underlying profit before tax of $1.39 billion, an 11 per cent increase compared with the same period last year. Statutory profits also climbed by 6 per cent, reaching $923 million. Continue…

by Roger Montgomery Posted in Companies.

• save this article
• POSTED IN Companies.

REA Group (ASX:REA) has delivered a commendable 1H25 result, with revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA) beating consensus estimates, alongside early January listings showing promising growth. However, news of CEO Owen Wilson’s upcoming retirement and revised cost guidance provide uncertainty the market will need to digest. Continue…

by Roger Montgomery Posted in Companies.

• save this article
• POSTED IN Companies.

The U.S. recorded its 23rd consecutive federal deficit in the year to September 2024 at US$1.83 trillion, around 6.5 per cent of gross domestic product (GDP). For October and November 2024, the federal budget deficit hit US$622 billion, up US$242 billion or 64 per cent year-on-year. Admittedly, some of the jump was related to timing differences. Continue…

by David Buckland Posted in Economics.

• save this article
• POSTED IN Economics.

As Christmas approaches and we gradually unplug from the frenzied activity of another year, I’d like to leave you with a brief summary of the year that was, provide some guidance on what 2025 might bring and offer you my prayers for a safe and peaceful Christmas. Continue…

by Roger Montgomery Posted in Market commentary.

• save this article
• POSTED IN Market commentary.

Liquidity is a concept critical to understanding investment markets.

Back in mid to late 2022, we wrote several posts on our blog and articles in The Australian, compelling investors to consider and pay attention to the very low price-to-earnings (P/E) ratios at which equities were trading. Continue…

by Roger Montgomery Posted in Economics, Market commentary.

• save this article
• POSTED IN Economics, Market commentary.

Telstra’s (ASX:TLS) latest half-year financial results, released yesterday, tell a story of modest gains, underpinned by cost control rather than broad-based expansion, raising important questions about the company’s path to sustainable growth. Continue…

by Roger Montgomery Posted in Companies.

• 2 Comments
• save this article
• 2
• POSTED IN Companies.

ResMed’s (ASX:RMD) half-year FY25 results reflect a company that is not only thriving in its core business but is also strategically positioned to capitalise on future growth opportunities. Continue…

by Roger Montgomery Posted in Companies, Stocks We Like.

• save this article
• POSTED IN Companies, Stocks We Like.

In this article for Firstlinks I discussed whether 2025 will be another bullish year for equities. Despite warnings of an imminent market correction, the rally in equities, particularly driven by the Magnificent Seven tech giants, persists, supported by positive economic growth and moderating inflation. While some indicators, like soaring valuations and speculative behavior, suggest caution, history shows that such conditions often don’t signal an impending crash. As long as disinflation and growth continue, there’s little reason to expect a sharp downturn. While speculative excesses are evident in certain sectors, the broader market remains robust, and 2025 could potentially see another strong year. However, future risks, including geopolitical tensions and global debt concerns, should not be ignored.

You can read the full article here: 2025: Another bullish year ahead for equities?

by Roger Montgomery Posted in On the Internet.

• READ ONLINE
• save this article
• POSTED IN On the Internet.

Last year, the S&P/ASX 200 Index, along with many of its largest companies, reached multiple record highs. This raises the question – is the market now overvalued? And if so, is a correction imminent? I joined Sean Aylmer on the Fear + Greed podcast to explore these questions. Looking at traditional indicators like the price-to-book ratio and the CAPE Shiller P/E, the market does appear overvalued. However, a deeper analysis suggests that valuations might not be as stretched as they seem, or that there are valid reasons for some ratios to be elevated. As long as disinflation continues alongside positive economic growth, I believe quality companies will continue to perform well. Listen to the full podcast below:

by Roger Montgomery Posted in Market commentary, Podcast Channel.

• save this article
• POSTED IN Market commentary, Podcast Channel.