Making Cents, Not Making Sense
In this week’s Video Insight Roger Montgomery discusses the US bond market and whether price signalling is broken.
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.
xiao fang xu
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Marc Faber: The question should be, “Which central bank is the most insane?” Because you understand, the central banks have been manipulating just about everything.
in Japan, they announce it, the central bank, the Bank of Japan, is buying shares through ETFs.
So there’s a gigantic manipulation and you and I, as an investor, we just don’t know how far these insane people will go with the manipulation of markets.
S&P/ASX 200 in year 2000 was around 3000 level and gold in australian dollars was around 450.
today in 2016, S&P/ASX 200 is around 5500 and gold is around $1700.
in america S&P 500 index was 1527 and gold was around $300
today S&P 500 index is 2173 and gold is $1300
Bruce Gleeson
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Hi roger – thank you for such a simple and concise summary. You mention that the Montgomery funds are holding and have held for a little while now higher levels of cash. In your travels / discussions with other fund managers is this something they are also doing / would like to do if the fund mandates allowed them? What indicators / statistics should investors continue watch to see how it all might play out. Kind regards
Roger Montgomery
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I’d be carefully watching for any change in the price trend of bonds, the emergence of stronger economic growth in the US and official inflation. But of course a derailing can occur from any black swan event, which by definition, is not predictable. I am not aware of what many other fund managers are doing or would like to do. I do know however my good friend Hamish Douglass at Magellan has also reported high cash levels.