Clues and commentaries on the global prospects for stocks, bonds and alternatives.
Selected Document
Sam Peters Market Commentary
ClearBridge | July 21,2014

Sam Peters discusses deflationary growth and finding opportunities in a market that is more fully valued

  • Despite the seeming collapse in global price volatility across an amazingly wide swath of assets, we are struggling with a challenging intellectual debate that is focused on the integrity of current market prices. How this debate gets resolved will largely determine the price volatility and asset returns that investors experience over the next few years
  • The underlying premise here is that markets are complex adaptive systems that tend to do a better job reflecting economic signals than the myriad of forecasters and experts that populate the news flow
  • With the market more fully valued, the key is not to stretch for yield and to avoid big errors. Accordingly, we continue to focus on companies with healthy balance sheets, good economic returns, high free-cash-flow generation, above average total owners yields and that appear to be selling well below intrinsic business value