Archive: October, 2019

October 28, 2019

Changing competitive dynamics in mortgage lending

In my video blog last week, I discussed why the major banks had not passed on the recent RBA rate cuts in full. This is due to an increasing proportion of each bank’s funding base approaching zero or close to zero interest rates.
October 17, 2019

The U.S. Healthcare Quandary

While many lament the sad state of the U. S. healthcare system, with U. S. healthcare expenditure being multiples of other developed nations on a per capita basis, attempts to reign in this inflating healthcare expenditure have been ineffective, with the gap widening between U. S. healthcare spending and that of other comparable countries.
October 16, 2019

Why IDP Education ticks all our boxes

By Dominic Rose

IDP Education (ASX: IEL) places international  students into Australia and other key English speaking destinations, while also administering English language proficiency tests. With defensive earnings, a long runway for growth and strong industry tailwinds, we think there’s plenty to like about this Australian-based global business. Exclusive Content This is exclusive content to subscribers on rogermontgomery. com.
October 15, 2019

Low interest rates – another headwind for the banks

  In this week’s video insight Stuart identifies the impact low interest rates have on the banks. On the back of three successive 25 basis point cuts to the RBA’s official overnight rate, the major banks have reduced their standard variable mortgage rates by a cumulative 55 to 59 basis points over the same period.
October 14, 2019

Should we pay boards more?

As we head into annual general meeting (AGM) season in Australia, one of the topics that will no doubt receive some focus will be management remuneration. This is increasingly a vexed issue in Australia and other developed markets, with management remuneration generally having skyrocketed in relative terms in recent decades.
October 10, 2019

CPG brands miss another opportunity

Consumer packaged goods brands have been working to keep up with new world trends for some time now. The introduction of more affordable private label products and the general shift to be fresher and healthier have left the major brands behind.
October 8, 2019

How to prevent a recession we don’t have to have

By Roger Montgomery

Back in November 1990, with the Australian economy deep in the doldrums, Treasurer Paul Keating uttered his now famous remark that this was “a recession that Australia had to have”.   It was, remarkably, Australia’s last recession.
October 4, 2019

Why EML is a core holding in our Small Companies Fund

By Dominic Rose

We recently launched the Montgomery Small Companies Fund.   This new fund has invested in some truly dynamic businesses that we believe will deliver superior returns over the coming years.   One of those is EML Payments (ASX: EML). EML is one of our fund’s initial top five holdings.


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