Why we think the market is still overvalued
The recent falls in stock prices around the world have tempted many investors to dive in and grab some value. But we think this could be jumping the gun – many stocks could still have further to fall.
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.
Richard Blacker
:
Not related to this article, but was just wondering what happened to the story on Challenger that was put up yesterday? I was hoping to read it again.
Roger Montgomery
:
Hi Richard,
I think it went up without review. It’s being reviewed.
Michael S
:
I’d like to know where an SMSF can get a cash account that returns 2.8%! (excluding “introductory rates”)
Roger Montgomery
:
Coincidentally I met an Australian Shareholder Association member at yesterday’s lecture in Melbourne who told me he had $500k with his bank and threatened to leave unless they gave him an improved return and he is now invested for 9 months at 2.85%
Michael S
:
There are Term Deposit accounts paying that rate but I know of no SMSF “cash” accounts paying that rate. I think most people would take the term “cash” to mean the funds are immediately available (or within 24 hours). A term deposit is more illiquid than a bond. Once cash is put into a term deposit it’s no longer cash! When a percentage of Montgomery funds is stated as being in cash, I think the presumption is that the cash is immediately available for investment in other assets.
Roger Montgomery
:
Cascading TD’s, and cash proper, ensure there is always cash to deploy.