Those who think it’s possible to predict the future of economies and markets with any sort of accuracy would have a hard time explaining 2020—a year dominated by a black swan event that descended u
The price of gold has risen considerably over the past two years as real interest rates—to which the price of gold has historically been inversely related—have cratered.
While growth has outperformed value significantly since the global financial crisis, the two styles have traded leadership in recent decades and value has dominated over the long term.
Investors in search of a dependable income stream traditionally have looked to bonds and other fixed income assets for their consistent coupon payments and relatively low volatility.
At First Eagle, we subscribe to a notion once put forth by renowned investor Warren Buffet: “Price is what you pay; value is what you get.” By first defining the fundamental character of a business
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.
After the very substantial decline of US equities in the first quarter of 2020, stocks rebounded in the second quarter—a pattern consistent with earlier recessionary periods. The strength of the equity market recovery in the face of increasing daily cases of Covid-19 surprised many commentators.
In the second quarter of 2020, the high yield market recouped much of the steep loss it had suffered in the first quarter of the year. The turning point for the market appeared to be the Federal Reserve’s March announcement that it would take aggressive measures to counteract the economic effects of the Covid-19 pandemic.
The price of gold was pulled by many crosscurrents in the third quarter. The key factors included the advance and retreat of the coronavirus, positive and negative news about progress on a vaccine, the uncertain fiscal outlook, political tensions surrounding the US elections and the changing values of the dollar and the euro.
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.
Though China fell into the first economic contraction in its modern history as a result of the Covid-19 pandemic, it has rebounded markedly and looks poised to be one of the few countries to post G
While many pundits have confidently expounded on industries they think will flourish/suffer under a new Biden or second Trump presidency, we believe the future of economies and investment markets c
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