William M. Priest

Given the severe correction, this veteran manager believes markets are fairly valued.

Michael Ryval 7 November, 2008 | 2:00PM
In a career spanning 42 years, William Priest reckons this bear market is one of the most difficult he has experienced. "This decline, so far, has been the second worst since the 1930s," says Priest, CEO and chief investment officer at New York-based Epoch Investment Partners Inc.

Priest, whose firm oversees about US$2 billion in assets for Toronto-based CI Investments Inc., maintains that markets are affected by three inter-related crises revolving around liquidity, solvency and the real economy.

The liquidity crisis, he believes, has subsided as the so-called TED spread (which measures the relationship between yields on U.S. treasuries and Euro-dollars) has fallen to 220 basis points (bps), after peaking at 400 bps. "It's come down a lot as central banks and the powers that be address the problem. The liquidity crisis can, and will, go away."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Michael Ryval

Michael Ryval  Michael Ryval, a regular contributor to Morningstar, is a Toronto-based freelance writer who specializes in business and investing.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies