First Eagle Global Fund: Corporate margins are artificially high

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First Eagle Global Fund: Corporate margins are artificially high

First Eagle Global Fund commentary for the third quarter 2014.

First Eagle Global Fund: Market Overview

In the third quarter of 2014, the MSCI World Index declined 2.2% while in the U.S. the S&P 500 Index increased 1.1%. In Europe, the German DAX decreased 11.1% and the French CAC 40 Index fell 7.9% during the quarter. The Nikkei 225 Index declined 1.5% over the period. Crude oil fell 13.5% to $91.16 a barrel, and the price of gold fell 9% to $1,208.16 an ounce by quarter end. The U.S. dollar strengthened 8.3% against the yen and 8.4% against the euro.

At First Eagle, we always keep a watchful eye on what can go wrong, not what is going right. In the last quarter we saw continued tensions in the Ukraine; and, with the rise of ISIS, increased instability in the Middle East. Yet asset prices and the appetite for risk remained relatively strong, even with the recent decline in stock prices.

RV Capital 1H22 Letter to Co-Investors in Business Owner

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