First Eagle Investment Management Investor Presentation — October 2021

Document content

3Q21 Market Overview: Against Perfection

Equity market dynamics in third quarter 2021 suggested

to us that investor confidence may have begun to wane

even as widespread vaccine distribution prompted many

jurisdictions to adapt their approach to managing the risk

of Covid-19. While the MSCI World Index was flattish

for the three-month period, September’s decline—the

first down month for the index since January—high -

lighted the challenges that may be ahead for investors.

After the stimulus-fueled rebound from the depths of the

Covid-19 dislocations, the capital markets, in our view,

appear to have entered a more complicated phase as 2021

nears an end, the result of a variety of historical aber -

rations and growing imbalances. With equity markets

priced for very high expectations even after a ho-hum

third quarter—and a range of economic, policy and

geopolitical risks looming—we are proceeding cautiously,

seeking pockets of long-term opportunity for resilient

wealth creation.Insights October 2021

• While equity valuations suggest little room for error,

mounting input cost pressures threaten the very high profit

margins that have supported corporate earnings growth.

• With “transitory” inflationary pressures proving to be