By
Borsgade
First Eagle provides their assessment of the market here 2Q 2023. They see a market driven higher by a small group of very large US tech companies and AI as the underlying theme.
At the same time, they see that the stock market and bond market no longer seem to be aligned. Although central banks have raised interest rates countless times, the economic situation hasn’t changed much: “While the excitement around the AI narrative helped boost US equity markets to varying degrees, a paradox seemed to emerge under the upbeat sheen. Even though the Fed has raised rates considerably over the past year-plus, financial conditions haven’t actually tightened all that much thanks to ongoing fiscal expansion, and equity and fixed income markets seem to have fallen out of sync as a result.”
First Eagle sees particular opportunities in international equity markets, highlighting Japan and China as two regions that stand out:
Though perhaps not as seductive as AI, a number of global developments during the quarter caught our attention. In Asia, the currencies of China and Japan have been notably weak, as central banks in both countries-for similar but nuanced reasons-are pursuing accommodative monetary policy as much of the rest of the world tightens.
Share the news
The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.
Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk
In a recent interview with Barron’s, value investor Christopher Davis delves into two critical investment considerations: identifying the right businesses to own and determining the appropriate price to pay for them.
In this interview, Francois Rochon, CIO of Giverny Capital, discusses how a handful of dominant companies—such as Amazon, Apple, Microsoft, and Nvidia—have significantly influenced the S&P 500’s performance in recent years. Their rapid growth has increased their weighting in the index, encouraging more investors to adopt indexing strategies, which further reinforces their dominance.
This is the first interview Li has accepted with domestic Chinese media after four years. In the interview, Li recalled his mentor Munger, summarized his spiritual legacy, and pointed out that it was Munger who made value investing possible in the global practice.
In this interview, Christopher Bloomstran, CIO of Semper Augustus, offers a wealth of insights into value investing, ethical business practices, and the critical role of patience and trust in achieving long-term success in both investing and life.
