At First Eagle, we’ve long held that the United States does not have a monopoly on good companies. While we think most market participants would agree with this sentiment, asset allocation data suggest US investors in general continue to be significantly underexposed to international equities relative to their share of the global opportunity set.
The Global Value Team shares their current investment thinking and provides a mid-year update on the Global, Overseas and U.S. Value Funds.
As we assess the broader economic backdrop, we see plenty of worries. The US-China trade dispute remains tense, and there are signs that it has slowed global economic growth. Employment in the United States has been at a multi-decade high, but it may, potentially, have peaked.
“One of the things that's important that we do a little bit differently at First Eagle, is we don't define value just in purely statistical terms."
Though the current business cycle—the longest in US history—is showing signs of age, the potential timing of and impetus for its end remain uncertain.