One of the biggest questions facing equity investors today is when and how to deploy surplus cash that they may have available. This is a question we have studied extensively in recent weeks, and while we can offer no definitive answers, some tentative conclusions may help to inform this decision.
Recency bias – that is, the tendency to overweight recent events – is a pernicious cognitive bias when investing. Being mindful of the effects of recency bias is the first step to enabling better decision making in the stock market, particularly during periods of heightened volatility.
Against a rapidly evolving macro backdrop, we thought it would be prudent to provide investors with a brief update on how the Montgomery Small Companies Fund (MSCF) has positioned itself and to share our thoughts on the risks and opportunities that we see ahead of us.
With the Australian market in freefall, readers and clients alike have asked us where we are looking to invest. While we continue to monitor the fluid situation closely, we have established some key criteria that we would look to satisfy in anticipation of a potential recovery.
In this week’s video insight, Andrew Macken reviews the recent changes to our global portfolios. Our concerns surrounding how COVID-19 will impact the US in particular have significantly grown from what they once were.
On the night of the 19 October 1987, the Dow Jones Industrial Average declined 22. 6 per cent from 2,246. 7 to 1,738. 4 points. During the ’87 Crash, the Australian All Ordinaries Index fell from 2,312 points to 1,149 points, a decline from peak to trough of 50 per cent.
We have naturally received a number of questions about how we are framing the risks around the coronavirus and how we are positioning our global portfolios. What follows is a brief summary of our thoughts on these topics, as they currently stand.
With the coronavirus officially being declared a pandemic we bring you this special edition of our video insight discussing how we are handling current market conditions at Montgomery.
Yesterday saw the ASX 200 Index sell off a whopping 7. 3 per cent in what was the most brutal fall in our Australian equity market since 10 October, 2008, which was in the height of the GFC. From the peak just 13 days ago the ASX 200 has dropped 19.
In the wake of the latest news about the coronavirus cases and the sharp correction seen in global equities, Andrew Macken, Montaka’s CIO addresses two key questions which are being posed by investors. To learn more, watch this special edition of Montaka’s Spotlight series.
There’s the Coronavirus pandemic and then there’s the associated panic. Both will have an impact on near term investment returns and as I write this note, the ASX200 price index has swung 13 per cent down from its January high. But the pandemic and the panic will also provide level-headed investors with an opportunity.
