FPA Capital Urges Extreme Caution, Talks Arrow Electronics (ARW), Avnet (AVT), Others

While the equity markets are currently trading at their multi-year highs and most market participants expect them to soar even higher, the fund managers at FPA Capital Fund, Inc. (FPPTX) think that this rally is overdone and are advising extreme caution to their clients. In their recently published market commentary for the third quarter, the fund managers noted that the equity market as a whole has become expensive, citing the multiples at which the fund’s benchmark, the Russell 2500 Index,...