Spark your fire – has the market bottomed?
The volatility being experienced in markets is causing a lot of concern and uncertainty for investors. In this podcast for Spark Your Fire Roger discusses current market conditions and possible investment opportunities. Listen here.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. 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.
Michael Shapiro
:
There was one interesting question regarding who will pay for all the government debt. It seems that since the RBA created additional trillions of dollars out of thin air, and may end up owning much of the government debt, pushing interest rates lower in the processes, will earn most of the interest payments, and subsequently will deliver the dividend back to the Treasury. Have they invented a perfect mechanism to create unlimited amounts of money without recourse? Can they then, finance unlimited government budget deficit, without future generations having to pay it back. Looking at Japanese example, where the JCB owns not only the biggest chunk of the government debts, but equities as well, with interest rates below zero, does it even matter how much debt there is?
It puzzles me that this can be done, and if so why do we even need budgets?
Roger Montgomery
:
welcome to Modern Monetary Theory in action Michael.
jimbo james
:
Yes, theoretically founded in Australia circa 1990s by Pauline Hanson. Subsequently laughed out of existence and branded a crackpot! Not by any stretch supporting her but the irony is amazing.
Roger Montgomery
:
Thanks Jimbo for the reminder.
Ricky Leong
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There seems to be a lot of positive anecdotal evidence about Azithromycin + Plaquenil. In addition, Dr Oz said on national TV that a Prof. Didier Raoult will shortly publish a study of these drugs with 1000 patients showing a strong effect (Only 7 deaths and 20 ICU admissions).
If this protocol were proven to work, might we see a rapid escalation in share prices due to record low interest rates and strong government stimulus?
Roger Montgomery
:
Anything is possible Ricky. As we have noted several times, a ‘treatment’ or a vaccine are positives.
stuart.a.griffiths
:
thanks for the commentary Roger, idp placement at $1.70, shares trading at $3. what am I missing here? shares trading at $14.5ish
Roger Montgomery
:
Would you like to elaborate Stuart?