• Will we see any special dividends from the banks as bad debt loan provisions are unwound? Watch here.

Roger Montgomery on why he’s optimistic about markets in 2021

Roger Montgomery on why he’s optimistic about markets in 2021

Roger Montgomery joined Gemma Dale on nabtrade’s Your Wealth podcast to discuss investing in 2021. After a year of massive volatility momentum stocks and namely those in technology, have dominated the pandemic’s bull market since the steep market correction in March. With the S&P500, Dow Jones and Nasdaq at record highs, have markets got ahead of themselves in pricing a return to growth?


Roger is the Founder and Chief Investment Officer of Montgomery Investment Management. Roger brings more than two decades of investment and financial market experience, knowledge and relationships to bear in his role as Chief Investment Officer. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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  1. Hi Roger

    In the talk, at about 2:30 you say that after about a day of the bottom of the markets. Looking at the S&P 500 it would be on the 23rd of March. That would mean on the 24th of march small caps would move back to 10%.

    Yet on this article https://rogermontgomery.com/your-questions-fund-positioning/ on 01 of April Montgomery Small Companies Fund – 21% cash, 79% Australia/New Zealand equities (generally ex-ASX 100)

    Could you please provide some clarity.

    • Hello Karlis, what is your question?

      The Montgomery Small Companies Fund started exiting stocks in February and exited with 17% cash. The process of lowering exposure to certain stocks and sectors continued in early March, with the Fund reaching 40% cash level early in the month. The investment team saw dramatically lower stock prices for many quality small caps, that in their view, would make it to the other side of the COVID-19 crisis, thought it more balanced to reduce cash weightings. The team took advantage of lower prices and put half of the funds’ cash balance to work – approximately 20 per cent.

  2. Hey Rog,
    By annuity style companies do you mean those with stable earnings and dividend stream? I’m interested in other examples to look at if you are able to share.

    • Not only those types of companies Peter. Think, for example, about companies that are currently not producing income streams but are developing them. One company that comes to mind that is developing what currently appears to be a very reliable future income stream is Macquarie Telecom. That should get you thinking.

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