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.