Watch Matt McLennan alongside Evercore ISI's Ed Hyman as they discuss what has changed in financial markets over the last year and what that means for the U.S. economy and markets.
At First Eagle, we think the best way to garner a margin of safety is to look across the globe and across the capital structure. And broadly what we're seeing is that markets are fairly fully valued bottom up. There are some selective areas of the market that have been out of favor where we're able to put capital to work, but we're seeing more opportunities to trim positions that we have been holders of for a decade or longer that have reached full valuation today.
A disciplined value strategy may provide investors with a more tolerable experience in the downward-trending phase and a potentially rewarding experience across the full market cycle.
Passive investments will play a role in some portfolios, but investors should also have the flexibility to take advantage of markets as they evolve and have the ability to protect their capital from permanent impairments through the use of managers who are both patient and discriminating.