First Eagle Global Value Team | Annual Letter
Renewed easing by central banks worldwide was the defining move in financial markets during 2019, instigating a robust rally that left a number of major equity indexes at or near all-time highs by year-end even as renewed economic growth remained elusive. This policy shift was coincident with signs that the slow drain of liquidity from the system in recent years had begun to take its toll on both asset prices and the real economy, and fears that geopolitical issues—in particular the US tariff disputes with China and others—could further impair already flagging momentum.
The commentary represents the opinion of the Global Value Team as the date noted and is subject to change based on market and other conditions.
The opinions expressed are not necessarily those of the firm. These materials are provided for informational purpose only. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Any statistic contained herein have been obtained from sources believed to be reliable, but the accuracy of this information cannot be guaranteed. The views expressed herein may change at any time subsequent to the date of issue hereof. The information provided is not to be construed as a recommendation or an offer to buy or sell or the solicitation of an offer to buy or sell any fund or security.
There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates. These risks may be more pronounced with respect to investments in emerging markets.
The principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value.
Investment in gold and gold related investments present certain risks, and returns on gold related investments have traditionally been more volatile than investments in broader equity or debt markets.
All investments involve the risk of loss of principal.