This Time is Different?
Roger discusses Reinhart and Rogoff’s book, This Time is Different, which reveals four repeating, key ingredients that proceed a financial crisis. What is in store for Australia?
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.
Luke Joseph
:
Great video Roger. After watching this and reading your latest white paper, I accept that there is likely to be a negative re-rating of “yield stocks”. But what is your opinion on how the market would value “growth stocks” and companies with a high ROIE once long bond rates start rising?
Roger Montgomery
:
Hi Luke, We cannot predict what relative price reactions might occur in the market. What we do know is that the only thing that can offset a lower ‘P’ in the P/E ratio is a higher ‘E’.
Scott
:
Other good read is Australia boom to bust by Lindsay David who echos many of your thoughts. A hard pill for many to swallow but no doubt the cycle will play out.