WORLD CLASS INTERNATIONAL COMPANIES SELLING AT SUBSTANTIAL DISCOUNTS TO THEIR US PEERS
Part 2 of 2
Matthew McLennan will assess the investment climate in international markets and tell us where he is finding world-class companies selling at substantial discounts to their U.S. peers.
The global economic outlook for 2023 is uncertain with the World Bank cutting its growth forecast to 1.7% from 3% and stating the “global economy is perilously close to a recession”. The International Monetary Fund slightly raised its growth estimate to 2.9% due to China’s reopening and slowing inflation. Central banks, especially in developed countries, are tightening to fight inflation, which may hinder future growth. The European Central Bank and the Fed have both raised short-term rates and signaled more increases in the future. A recent survey of 1200 CEOs shows 98% expect a global recession, with more than half fearing a recession worse than the 2008 financial crisis.
In Part 1, we discussed the risks and opportunities in the U.S. markets with McLennan.
WEALTHTRACK Episode #1932 broadcast on February 03, 2023Listen to the audio-only version here:
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MATTHEW MCLENNAN
- Co-Head of Global Value Team, First Eagle Investments,
- Portfolio Manager, First Eagle Global Fund
ACTION POINT
CONTINUE TO HOLD A COMFORTABLE AMOUNT OF CASH IN YOUR PORTFOLIO
- As central banks tighten, recession risks growing
- Rapid reversal of credit conditions from easy to tight bound to cause economic & financial dislocations, if not shocks
ONE INVESTMENT
STABLE GLOBAL DIVERSITY
BUY: FEMSA
STOCK MENTIONS
HCA Healthcare Inc. (HCA)
Analog Devices, Inc. (ADI)
Unilever PLC ADR (UL)
Ambev SA ADR (ABEV)
Compagnie Financiere Richemont SA (CFRUY)
Berkshire Hathaway Inc. Class A (BRK.A)
Prosus N.V. ADR (PROSY)
Fanuc Corp ADR (FANUY)
Secom Co Ltd ADR (SOMLY)
FROM THE ARCHIVE
Matthew McLennan from the WEALTHTRACK Archives:
WEB EXTRA
HEAD CLEARING
Similar to an overloaded computer’s memory, the brain can use a reset to work efficiently. Matthew McLennan shares his refresh approach.
