FEAR & GREED | Business News Q+A: What's next after yesterday's market tumble?
Nov 18, 2025
Roger Montgomery, Founder and Chief Investment Officer at Montgomery Investment Management, dives into the recent 2% tumble of the S&P/ASX 200, driven by tech stock declines and rising geopolitical fears. He discusses how stretched valuations, particularly in the tech sector, contribute to market fragility. Roger also explores the possibility of an AI bubble, red flags in financials of tech giants like NVIDIA, and a broader sell-off affecting banks and miners. His insights on diversifying portfolios amidst increasing volatility provide valuable strategies for investors.
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Valuations Are At Bubble-Like Extremes
- Market valuations are extremely stretched across multiple metrics, rivaling the dot-com bubble levels.
- Roger Montgomery says general-purpose tech booms like AI drive these extremes before cyclical realities set in.
AI Is A General-Purpose Boom With Limits
- AI is the latest general-purpose technology boom that can create misplaced structural expectations.
- Montgomery warns commercial realities will produce cyclical bumps despite thematic enthusiasm.
NVIDIA Sales Are Largely On Credit
- NVIDIA's receivables have grown faster than revenue and now represent 86% of sales.
- Montgomery highlights that heavy receivables imply much GPU demand is on credit, not real cash sales.