Montgomery Investment Management

In our latest video insight, Roger Montgomery discusses the impact of the recent RBA interest rate cut on self-funded retirees and traditional income investments. While lower rates may stimulate economic activity, they present challenges for those relying on cash and term deposits to preserve purchasing power.? ? One alternative asset class gaining traction is private credit, offering the potential for higher yields, diversification benefits, and inflation protection. See if private credit could be a good option for your portfolio.?

I joined Philip Muscatello on the Shares for Beginners Podcast to discuss what 2025 could hold for investors. With inflation easing, economic growth remaining steady, and liquidity shifts reshaping markets, we explored the key factors influencing the investment landscape this year.?? We discussed the role of AI in markets and whether it presents a real opportunity for investors and I also shared some stock picks, including Commonwealth Bank (ASX:CBA), Nick Scali (ASX:NCK), ARB Corporation (ASX:ARB), and more.?? If you're interested in where markets may be headed and how to navigate the opportunities in the coming year, listen to the full conversation: https://bit.ly/4bfsLBW??

We're excited to share that Sean Sequeira, CFA, Chief Investment Officer of Australian Eagle Asset Management, our partner in Australian equities, was featured in The Australian Financial Review today. ? The article highlights Sean’s focus on 'change' and his expertise in identifying overlooked investment opportunities and transforming them into lasting value for investors over his 30-year career. And the importance of working as a close knit team. Congratulations to Sean Sequeira, CFA, Alan Kwan, CFA, Daniel Chan, CFA, Mark Oliver Harshita Saini for your stellar track record over the past 20 years. It’s been a pleasure working with you all! ? Read the full article here: https://bit.ly/3XeoxVy

In this week’s video insight, Roger Montgomery discusses the latest updates from Australia’s reporting season, where earnings and dividends have generally exceeded expectations. ?? So far, companies reporting above forecasts outnumber those missing, contributing to the market’s performance in February.

CSL Limited (ASX:CSL) has delivered a mixed set of half-year results, with revenue rising by five per cent and profits also edging higher. The company’s vaccine division, Seqirus, saw weaker performance due to lower flu vaccination rates in the U.S., a trend seen across the industry as pandemic-driven habits ease. In contrast, CSL’s plasma therapy business, which provides life-saving treatments for immune disorders, is delivering strong growth thanks to increased plasma collections and improved efficiency. Management remains confident, reaffirming guidance for full-year profit growth of 10 to 13 per cent. Read the full analysis here: https://bit.ly/41iNqShm

In his latest article for The Australian, Roger Montgomery explores the shifting outlook for markets in 2025. With U.S. inflation re-accelerating and the prospect of interest rate cuts now less certain, investors may need to reconsider their expectations for high-growth sectors. You can access the article here: https://bit.ly/4b1Wz50 [please note, access to this article requires a subscription to The Australian]

Commonwealth Bank of Australia (ASX:CBA) delivers strong December-half results, reinforcing its competitive edge. The Commonwealth Bank of Australia reported a 2 per cent increase in cash profit to $5.13 billion, exceeding expectations. Shareholders welcomed a 5 per cent dividend increase to $2.25 per share. The stock continues to strengthen its position through direct customer relationships, originating two-thirds of home loans in-house and driving growth in business banking with a 45 per cent increase in transaction accounts over four years. Read the full analysis here: https://bit.ly/4hZkvbF

Nick Scali (ASX:NCK) delivered a strong 1H25 result, exceeding earnings guidance despite softer ANZ trading. ?? Gross margins outperformed expectations, and the UK rebranding is gaining traction, with Nick Scali products now the top sellers. While near-term challenges persist, management’s disciplined approach and proven execution provide confidence in long-term growth for this small cap stock. Read about the full results here: https://bit.ly/3EtL3mX

AI is dominating headlines and conversations at the moment, with many seeing it as the next big investment opportunity. But do its biggest players really have the monopoly power investors believe? In Roger Montgomery’s latest article for The Australian, he examines whether #AI giants can maintain pricing power or if growing competition, such as last week’s arrival of DeepSeek AI which triggered a sell-off in AI-linked #stocks, will start to undercut their dominance. Read the full article here: https://bit.ly/3X9LSYD [kindly note, access to this article requires a subscription to The Australian]

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