I joined Jas on the Spark your FIRE podcast to discuss the positive outlook for equities, especially innovative companies with strong growth potential. We highlighted how the current landscape of disinflation and economic growth sets the stage for firms with pricing power and discussed the rapid growth potential of small caps like Macquarie Technology (ASX:MAQ) and Megaport (ASX:MP1). Additionally, we explored the property market and emerging markets, and I spotlighted TUAS (ASX:TUA) as a stock pick worth considering. Listen via the embed player below:  The Montgomery Small Companies Fun ..read more

In my recent article for Firstlinks, I revisited the stance I took nearly a year ago, advocating for investment in small caps – a position that seemed premature at the time. Subsequently, the investment landscape has evolved significantly, steering many investors, myself included, towards smaller companies both domestically and internationally. The current macroeconomic backdrop, characterised by disinflation and positive economic growth, seems particularly conducive to smaller companies with robust pricing power and innovation, traits that are essential for outperformance. Read the full artic ..read more

During the March 2024 quarter, the Polen Capital Global Growth Fund (the Fund) increased by 12.49 per cent in Australian dollars, while its benchmark, the MSCI ACWI Net Total Return Index, in Australian Dollars, returned 13.10 per cent. In many ways, the first quarter marked a continuation of the market dynamics already in place at the end of last year.   Markets staged a robust two-month rally into the end of the year on optimism that the Fed would achieve an elusive soft landing and taper interest rates in early 2024. This rally continued unabated into the first quarter, with much ..read more

In this week’s video insight, I delve into Nvidia’s (NASDAQ:NVDA) remarkable trajectory, from a key player in the autonomous car industry to a soaring tech giant, and its subsequent 1300 per cent rally. However, beyond Nvidia’s individual narrative, I confront the core challenge of valuing growth, dissecting the balance between growth rate and sustainability over time.   Transcript:  Hi everyone, I’m Roger Montgomery, and welcome to this week’s video insight.  I have recently written a blog post about Nvidia. Nvidia shares were recommended to me on the 27 February 2018 whe ..read more

The frequency of calls that the market is in a euphoric bubble is increasing. It’s worth exploring some of the evidence used to reach that conclusion before deciding whether now is the time to adopt a more cautious stance and to ready oneself for the benefits lower prices deliver.   Notwithstanding the need for more data and analysis to support these claims, we’ll begin by dealing a swift blow to the weakest argument that the market is due for a correction – that it’s risen a lot. Yes, it is true that stocks in even higher-quality companies like Goodman Group (ASX:GMG), for example ..read more

After the disaster for equity markets in 2022, calendar 2023 saw investors return to rewarding robust fundamentals, but only for a very narrow band of companies. Perhaps it was the fear of further rate rises or the fear of recession, but investors concentrated their bets on only the most liquid securities, those of mega cap companies. And since the 1970s, whenever disinflation has been accompanied by positive economic growth, the equities of innovative companies with pricing power have done well. Calendar 2023 was no exception. Artificial intelligence (AI) was the innovation investors latched ..read more

In a constantly evolving investment landscape, private credit stands out as an important opportunity, especially for those seeking alternatives to traditional income solutions and volatile public markets. Private credit is an option for investing that, for example, can generate potentially superior income streams to those from owning bank shares, but without the risk to capital that comes with the stock market.  Moreover, the current macroeconomic environment is one private credit investors have been waiting for. The unprecedented pace of interest rate hikes and consequent volatility in ..read more

In this week’s video insight, I delve into the promising realm of small cap companies for 2024, a sector where I’ve maintained a bullish stance since November 2022. The Small Ordinaries Index and the S&P600 Small Cap Index have shown noteworthy gains, underscoring the potential that these companies hold in a recovering economy. As global economic indicators signal a gradual improvement and the potential for a disinflationary boom, the stage is set for innovative small caps to thrive, especially with interest rates poised for a cut.  Transcript:  As you know, I have been bullish ..read more

Wow. Talk about playing the man and not the ball! Perhaps some of the most vitriolic feedback I have encountered has come from those who have chosen to write to me explaining how wrong I am about Tesla (NASDAQ:TSLA) possibly being just another car company.  They’re as staunchly convinced about the company’s prospects as they are about its products.  By way of one publishable example, a reader wrote: “(Tesla) is the most misunderstood company in the world. It is so much more than a car company … This will 10-bag in the next decade and people will have their aha moment.”  My argu ..read more

The monthly household spending indicator released by the Australian Bureau of Statistics (ABS) last week, is an additional data point crucial to the Reserve Bank of Australia’s (RBA’s) ongoing monitoring and decision making. Household spending was 3.6 per cent higher than this time last year. This follows a slight dip we saw in December 2023. The ABS reported a 1.2 per cent increase in December 2023 and 2.9 per cent increase in January 2024.   The recent uptick is predominantly a result of increased spending in transport and automotive fuel. According to the monthly consumer price i ..read more