First Eagle Investment Management December 2015 commentary, titled. “Navigating The Current Rate Environment.”
Low interest rates globally have been an important driver of asset price returns over the past few years and are very much on investors’ minds today. In our conversations with financial advisers, many questions come up: How long can we expect the low-rate environment to continue? What has led rates to be so low in the first place? What are the consequences of global central banks’ quantitative easing (“QE”) policies? Have we definitively slain the specter of inflation?
Giorgio Caputo, one of the portfolio managers of the First Eagle Global Income Builder Fund, shares his thoughts on today’s low-interest-rate environment and how it’s impacting asset prices and the search for value and income.