May 13, 2019 – Bryce Fegley, portfolio manager of Sextant Global High Income Fund, was featured in the Money Life podcast with Chuck Jaffe in an episode entitled “More from Morningstar: Managers, market strategists and more. Oh my!”
Jaffe, a syndicated financial columnist and host of Money Life, interviewed Fegley in person at the 2019 Morningstar Investment Conference in Chicago. They discussed where investors can look for yield, the outlook for emerging markets, European dividend-paying stocks, and whether junk bonds really are junky.
In addition, Jaffe asked Fegley how to frame investors’ expectations of income and yield in preparation for the next market downturn:
“There’s a saying about market cycles or expansions – that they don’t die of old age,” said Fegley. “But I do think there’s a possibility that the self-reinforcing behavior that permanent-seeming economic expansions produce, where risk seems like it’s gone, and therefore people who control or make risky decisions make decisions with higher levels of risk to try to crank out a little bit more return. They ultimately sow the seeds of their own collapse.”
Fegley continued, “When you have a long economic expansion like this, you have to be wary that, underneath the surface, conditions are building up and creating some instabilities. I don’t see any catalyst on the immediate horizon to cause me to fear that markets are about to run out of steam or entering some critical phase, but it’s definitely something that’s always in the back of my head, and I’m always looking out for those things.”
Bryce Fegley MS, CFA®, CIPM® joined Saturna Capital in 2001. He worked in brokerage and trading, and later as an investment analyst. Beginning in 2010, he served two years as president of Saturna’s wholly-owned Malaysian subsidiary, Saturna Sdn. Bhd., in Kuala Lumpur. He has been portfolio manager of the Sextant Global High Income Fund since 2012. For more information about the Sextant Global High Income Fund, read A Global, Asset Allocation Approach the High Income Investing.