FEAR & GREED | Business News Q+A: As markets surge, this investor still turns to the words of Warren Buffett
Apr 8, 2026
Roger Montgomery, founder and CIO at Montgomery Investment Management and seasoned value investor. He breaks down the recent market rally, why beaten-down retail and AI-linked stocks popped, and why fundamentals still matter. He discusses Buffett’s cash-minded caution, midterm-season volatility, sticky inflation and when market panic can create buying opportunities.
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Beaten Down Retail Stocks Led The Rally
- Recent rally saw beaten-down retail and AI‑fear stocks like Hub24, NetWealth, Seek and REA jump sharply.
- Montgomery notes Hub24 and NetWealth rose 10–12% while mega caps like CBA and CSL barely moved.
Rally Driven By Sentiment Not Fundamentals
- Market rallies can be driven by sentiment shifts rather than improved fundamentals.
- Roger Montgomery notes $400 billion held by Warren Buffett as evidence that fundamentals haven't broadly improved.
Evaluate Stocks By Long Term Fundamental Growth
- Return to fundamentals when deciding investments and ask if a company can double or triple in five to ten years.
- Use that growth view to calculate the right price and required return before buying.