Roger Montgomery outlines the 4 key investment issues that Aussie investors should be watching in 2015

Roger Montgomery outlines the 4 key investment issues that Aussie investors should be watching in 2015. 1) Higher US rates: In 13 of the 16 times the Fed raised rates (since WWII) the market went into a pullback, correction or bear market. 2. Financial System Inquiry: The Montgomery Fund expects returns from Australian banks to be more muted. If interest rates rise locally in 2015 (it may not happen until 2016), the appeal of owning banks, at above rational estimates of intrinsic value, declines. 3. The Iron Ore price: China is slowing and demand for iron ore is slowing with it. For 30 years before 2004 the price of iron ore traded at between US$10 and US$20/tonne. To think it can't fall lower than its current level of US$75/tonne is optimistic. 4. The property market: A third of all property is owned by investors and a significant number of loans are interest only. In a rising interest rate environment, these loans could look like the subprime loans of the US during the GFC. Full article here: (VIEW LINK)


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