Clues and commentaries on the global prospects for stocks, bonds and alternatives.
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Market Commentary
ClearBridge | April 17,2014

Sam Peters discusses long-term value creation in the equity market

  • Most macro and market observers spend almost all their time talking about growth, but over the long sweep of time real equity returns are negatively correlated with economic growth
  • The classic course of capitalism is to add capital to labor in order to drive productivity gains and compound real wealth
  • The irony of increased optimism is that it makes the job of long-term valuation investors more challenging, but our strategy remains to favor companies with high free-cash-flow (FCF) yields