First Eagle Global Fund’s Matthew McLennan says he’s finding markets expensive. McLennan tells WealthTrack that his fund has a cash position in the 20% range, because he’s having trouble finding stocks to be enthusiastic about.

He also sees overall debt loads being too high, and thinks investors shouldn’t be bullish on stocks just because interest rates — and thus fixed-income yields — are very low. He says they should instead be asking why interest rates are so low. The reason is high debt, which should in fact be a bearish factor. McLennan talks about how he likes firms that deal in “scarcity” — either in terms of the products they deal with, or in terms of having business models that are difficult to replicate — and he explains why patience is so important.

[youtube=https://www.youtube.com/watch?v=0wUynkckVcI]