Buy gold to hedge against complacent shares: First Eagle’s McLennan

Markets have become complacent amid signs that core inflation is slowing and the US banking crisis is over, warned First Eagle Investment’s Matthew McLennan, who suggested investors buy gold as a hedge against volatile equity markets over the next decade.

The co-head of the global value team and portfolio manager at the $US124 billion ($184 billion) firm told The Australian Financial Review Alpha Live summit that the root causes of the unexpected surge in inflation – a loss of fiscal discipline and corporate pricing power – are yet to be resolved.