The rules have changed. Has your portfolio?
In my first video insight for 2026, I explained that the era of easy investing is over. With valuations elevated, markets concentrated in a narrow group of stocks and volatility rising, I believe investors need to think more carefully about diversification.
That is why we continue to focus on strategies uncorrelated to markets, such as the Aura Private Credit Income Fund, which seeks to provide investors with access to regular income, and the Digital Asset Funds Management – Digital Income Fund, which seeks to profit from volatility and pricing inefficiencies across global asset exchanges.
These strategies may offer diversification benefits and alternative sources of income in a changing investment environment. If you would like to learn more about our offerings and whether they are appropriate for your circumstances, please fill in the form below to receive further information.
Transcript:
For the last twenty years, being an investor was – dare I say it – kind of easy. We had low inflation, falling interest rates, and central banks always ready to catch us if we fell. But if you’ve been feeling like the ground is shifting under your feet lately… you’re right. The era of ‘easy’ investing could be officially over.
If you’ve been watching our videos, “I’ve been waving a flag about this for nine months now. Since 2022, we’ve loved equities and believed in strong annual returns, supported by a disinflationary backdrop and positive economic growth. Historically, when combined, these two have consistently supported stock prices, especially those of innovative companies with pricing power. But the market has changed. Stocks are now historically expensive, and everyone is crowded into the same few AI themes.
Lakshman Anantakrishnan, the CIO at ANZ Private, recently echoed this in the Financial Review, noting the ‘rules’ we used to rely on are being rewritten by three big things: Fiscal dominance and deglobalization, a shrinking workforce of younger people unwilling to politically support the ageing wealthy, and a massive expansion of debt worldwide.
The result? Broad indices likely won’t keep delivering those easy double-digit returns we’ve enjoyed. Instead, we’re looking at steeper drawdowns, much higher volatility, and persistent inflation, producing a strong correlation between stocks and bonds, raising a question mark over the merit of a traditional 60/40 portfolio.
So, if PE ratios for the major stock indices are at record highs, if too much money is crowded into an investment theme that will soon come up against a cyclical reality, and the dependability of the traditional stock and bond portfolio is shaky, where do you go?
This is why I’m doubling down on our 2026 call to look at Private Credit and Digital Income. These aren’t just ‘alternative’ buzzwords; I believe they’re essential tools for a world where interest rates are no longer stuck at zero and market leadership rotates faster than ever.
If you’re looking to stabilise your future returns and move away from the hopium built into the large-cap equity indices, I’d love for you to take a look at what we’re doing.
Our Aura Private Credit funds are designed to provide a consistent attractive yield by tapping into lending markets that traditional banks, thanks to post-GFC regulation, have pulled away from. For those seeking a modern edge, our DAFM Digital Income fund offers a unique way to generate income from high-frequency arbitrage that isn’t dependent on market direction.
My goal for 2026 is simple: diversify, establish attractive income streams and reduce dependence, a little, on the next stock market mood swing.
“The rules have changed, but your goals don’t have to. It’s just time to update the strategy. You can Click the link below to learn more about Aura and DAFM, or reach out to Rhodri Taylor or David Buckland for a chat about readying your portfolio ready for a new era.
Disclaimer:
You should read the relevant Product Disclosure Statement (PDS) or Information Memorandum (IM) before deciding to acquire any investment products.
Past performance is not a reliable indicator of future performance. Returns are not guaranteed and so the value of an investment may rise or fall.
This information is provided by Montgomery Investment Management Pty Ltd (ACN 139 161 701 | AFSL 354564) (Montgomery) as authorised distributor of the Aura Core Income Fund (ARSN 658 462 652) (Fund). As authorised distributor, Montgomery is entitled to earn distribution fees paid by the investment manager and may be issued equity in the investment manager or entities associated with the investment manager.
The Aura Core Income Fund (ARSN 658 462 652)(Fund) is issued by One Managed Investment Funds Limited (ACN 117 400 987 | AFSL 297042) (OMIFL) as responsible entity for the Fund. Aura Credit Holdings Pty Ltd (ACN 656 261 200) (ACH) is the investment manager of the Fund and operates as a Corporate Authorised Representative (CAR 1297296) of Aura Capital Pty Ltd (ACN 143 700 887 | AFSL 366230).
You should obtain and carefully consider the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the Aura Core Income Fund before making any decision about whether to acquire or continue to hold an interest in the Fund. Applications for units in the Fund can only be made through the online application form that accompanies the PDS. The PDS, TMD, continuous disclosure notices and relevant application form may be obtained from www.oneinvestment.com.au/auracoreincomefund or from Montgomery.
The Aura Private Credit Income Fund is an unregistered managed investment scheme for wholesale clients only and is issued under an Information Memorandum by Aura Funds Management Pty Ltd (ABN 96 607 158 814, Authorised Representative No. 1233893 of Aura Capital Pty Ltd AFSL No. 366 230, ABN 48 143 700 887).
Any financial product advice given is of a general nature only. The information has been provided without taking into account the investment objectives, financial situation or needs of any particular investor. Therefore, before acting on the information contained in this report you should seek professional advice and consider whether the information is appropriate in light of your objectives, financial situation and needs.
Montgomery, ACH and OMIFL do not guarantee the performance of the Fund, the repayment of any capital or any rate of return. Investing in any financial product is subject to investment risk including possible loss. Past performance is not a reliable indicator of future performance. Information in this report may be based on information provided by third parties that may not have been verified.
Disclaimer:
The Digital Income Fund is available for wholesale investors only.
Performance of the Digital Income Fund – Digital Asset Class since its inception on 1 May 2021. Net returns after fees and expenses as at 31 December 2025 and assumes reinvestment of distributions.
This is general information and doesn’t take your personal circumstances into account, so seek independent advice before investing. Investing involves risk, including the possible loss of principal. Past performance is not a reliable indicator of future performance.
Diversification does not ensure a profit nor guarantee against a loss. Montgomery Investment Management holds AFSL number 354564.
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.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
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.
