Rather than committing to one market or the other, the highly selective investment approach used to manage the First Eagle Global Fund may serve as a bridge between the familiarity of domestic equi
Watch a replay of Matt McLennan on Bloomberg TV, where he shared his thoughts the potential shift in leadership within market and what he favors most within the value segment.
The multiple expansion in growth stocks appears to reflect two recent developments. First, near-zero interest rates have pulled down the discount rate, making future cash flows appear more attractive relative to current ones. Second, the pandemic-driven shift online provided a significant boost to companies with a strong online presence
While growth stocks have continued to outperform, their market values in most cases have increased at a far greater rate than their revenue and cash flow.
It would be easy to look at some data from the third quarter and mistake it for a period of blithe recovery. Covid-19 fatalities moderated in the US, while business confidence returned. Longdated inflation expectations approached the Federal Reserve’s benchmark near 2%. The MSCI World Index gained close to 8%, while high yield bond spreads tightened by approximately 100 basis points. Under the surface, however, the situation was more complex.
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