Using Single-Country ETFS as Part of a Tax-Loss Harvesting Strategy
Dina Ting, Franklin Templeton’s Head of Global Index Portfolio Management, sheds light on the benefits of single-country ETF allocations against what has been a rocky macro backdrop and discusses ways to re-evaluate potential opportunities in terms of tax-loss decision-making.
The New FAFSA: What Every Advisor, Parent and Student Should Know
Recent legislative changes will impact the student financial aid process and could create stress and confusion. Dr. Peter Mazareas, author, college financing expert and Co-Founder of Invite Education, shares some need-to-know information for parents, students, and financial advisors.
Personalization in Retirement Plans Is Paramount
Individuals are increasingly looking for more tailored investment solutions, so it makes sense for plan fiduciaries to consider a more personalized approach, according to John Kutz, National Retirement Plan Strategist. He says personalization may be the ticket to better retirement outcomes.
Inflation—the Final Mile
In the context of fighting inflation, the “‘final mile”’ represents the successful and sustainable achievement of a central bank’s inflation target. Stephen Dover, Head of Franklin Templeton Institute, opines on the Fed’s ability to reach it.
Democratizing Alternative Investments
In the latest episode of the Alternative Allocations podcast series, Franklin Templeton’s Tony Davidow has an insightful conversation with the firm’s CEO, Jenny Johnson, regarding the burgeoning opportunities in alternative investments, especially in the current financial climate.
How Long Will Consumers Keep Spending?
We speak with ClearBridge Investments’ Jeff Schulze about a topic on many investors’ minds: the 10-year US Treasury yield and the path of monetary policy. He also shares his views on the latest US retail sales data and whether consumer resilience will last into 2024.
Discovering Sources of Alpha and Diversification in Fixed Income
In an economic environment characterized by rising interest rates and a forecasted slowdown, the fixed income asset class has emerged as a beacon of opportunity.
The Future of Investment and Wealth Management
Topics discussed included the future of investment management and generational differences among investors as well as trends and technologies transforming the industry, including artificial intelligence (AI) and digital assets.
On My Mind: The Fed and Markets—Same as It Ever Was
Our Franklin Templeton Fixed Income CIO Sonal Desai sees this market reaction as an excess of exuberance that sets the stage for more volatility. She shares her latest insights on the policy outlook and the implications for investors.
Portfolio Construction for Alpha Generation and Risk Mitigation
In this period of higher interest rates, the quest to capture alpha and mitigate risk in corporate credit requires a more refined approach.
Alternative Allocations: Lessons Learned From Institutions
At a recent educational event organized by Franklin Templeton, Franklin Templeton Institute’s Senior Alternative Investment Strategist Tony Davidow hosted a day of panels that focused on alternative investments.
K2 Hedge Fund Strategy Outlook: Fourth Quarter 2023
Higher macro and market volatility, along with greater dispersion, creates a favorable environment for active trading, according to K2 Advisors. Get the team’s latest hedge-fund strategy outlook.
REITs: Providing Visibility in an Age of Uncertainty
Franklin Equity Group portfolio managers Daniel Scher and Blair Schmicker make the case that REITs are more than just a “collection of assets,” as they were once viewed, and instead offer exposure to quality business models and professional management teams with long track records of value creation.
Public and Private Avenues: How Franklin Equity Group Sees Digital Transformation
In this article, Portfolio Managers Jonathan Curtis and Ryan Biggs share their insights on where they see opportunities in digital transformation and how they are thinking about the relative attractiveness of public and private company investment opportunities.
The Case for Low Volatility and High Dividend Equities in International Markets
There are reasons to be cautious in many markets, but low volatility and high/sustainable dividend stocks can help mitigate risk while providing income and equity exposure. The Franklin Templeton Investment Solutions Team weighs in.
Should We Fear the Rapid Rise of Interest Rates?
Term premiums have been on the rise, but should investors be concerned? Stephen Dover, Head of Franklin Templeton Institute, explains what term premiums are, and why they are worth paying attention to.
Sphere of Influence: How to Not Miss the Metaverse and ETFS
There is once again growing interest in the world of the metaverse as technological advancements and innovative strategies in different sectors have continued to show progress.
Anatomy of a Recession Update: Threats to a Soft Landing
With lots of chatter in the United States around the potential for a soft landing, Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, shares his thoughts on the matter and the overall state of the US economy in our latest “Talking Markets” podcast.
Sustainable Resource Nexus: Analyzing the Convergence of Food-Water-Energy on Financial Markets
Franklin Templeton Fixed Income Research Analysts Ashley Allen and Bryant Dieffenbacher discuss the food, water and energy sectors and what their convergence means for investors.
Alternative Allocations: Opportunities in Alternative Credit
In this second episode, Franklin Templeton Institute’s Tony Davidow discusses opportunities in alternative credit strategies with Richard Byrne from Benefit Street Partners.
Investment Ideas—Is the Muni Comeback Still in the Making?
Making the case for municipal bonds today with Stephen Dover, Head of Franklin Templeton Institute.
Global Market Outlooks—Too Hot, Too Cold or Just Right?
The US economy has been more resilient than many pundits had anticipated over the past year—but can this resilience continue? Stephen Dover, Head of Franklin Templeton Institute, recently hosted a discussion with economists from across our firm to explore where the risks and opportunities for investors lie today and into year-end.
Quick Thoughts: Midnight Madness
At least for now, the US government has avoided a shutdown. Stephen Dover, Head of Franklin Templeton Institute, opines on what may come next after this temporary resolution, and the impacts on the markets.
Japanese Equities—A Force Awakens
From inflationary tailwinds for earnings growth to corporate reforms that unlock shareholder value, multiple regime shifts are underway to restore the appeal of the Japanese equity market, according to the Templeton Global Equity Group team.
Stress Testing the Foundations: Analyzing the Vulnerability of Us Banks To Falling Commercial Real Estate Values
The commercial real estate sector’s continued challenges could potentially impact US banks. Franklin Templeton Fixed Income’s Shawn Lyons discusses the ongoing commercial real estate crisis and how US banks are safeguarding themselves against these issues.
Peak CD Rates Don't Always Result in Peak Performance
In 2022, the Federal Reserve began aggressively raising interest rates and has continued to do so in 2023, albeit at a much more measured pace. This has helped many certificate of deposits (CDs) increase their interest rates to levels not seen in well over a decade. However, while investing in CDs at peak rates might seem like a sound strategy, in the past it hasn’t always translated into the best outcome for investors.
Alternative Allocations: Navigating Through Economic Regimes
Certain asset classes thrive or lag as economies move through one cycle to the next. Franklin Templeton Institute’s Tony Davidow shares how to analyze different economic indicators and how asset classes perform through economic regime changes.
What’s Next for Gilts and the United Kingdom?
Gilt prices have been struggling this past year due to surging inflation and interest-rate increases. David Zahn, Franklin Templeton Fixed Income’s Head of European Fixed Income, shares his outlook for the UK economy and why he thinks now is a good time to consider investing in gilts.
Can Smart Beta ETFs Return to Prime Time?
Active ETFs have scored more investor interest this year than smart beta ETFs—but does that mean the latter will soon be out of the game completely? David Mann, Head of ETF Product & Capital Markets at Franklin Templeton, opines.
On My Mind: Restrictive? We’ll know it when we see it.
The Fed sent a strong signal that interest rates will remain higher for longer, as our Franklin Templeton Fixed Income CIO Sonal Desai has long predicted. The Fed also started to acknowledge that the natural real rate of interest is higher than it thought.
Opportunity in Investment-Grade Credit
Investment-grade credit is currently offering impressive yields, with relatively less risk than other fixed income sectors, according to Josh Lohmeier of Franklin Templeton Fixed Income. He makes a case for investing in the space today.
Workplace Retirement Voice: Why Wealth Advisors Should Embrace Workplace Retirement Plans
For many wealth advisors, workplace retirement plans are either a burden or an afterthought, according to John Kutz, National Retirement Plan Strategist at Franklin Templeton. He and his team explore why embracing these plans can benefit their practice, and their clients.
Where to Add Risk in Multi-Asset Portfolios Right Now
While some stocks may seem expensive, there are areas of opportunity that feature attractive valuations and growth catalysts, according to the Franklin Templeton Investment Solutions team.
Weathering the Storm: Exploring Climate Change Adaptation and the Investor’s Imperative
The Franklin Templeton Fixed Income team believe that issuers that think critically about the environment in which they operate could outperform throughout the full market cycle compared with those who are slower to adapt.
A Pioneering Income Strategy Celebrates 75 Years
Celebrating an exciting milestone: Franklin Income Fund turns 75. Learn more about this flagship strategy and read some fun facts from back in 1948.
Copilot, Not Autopilot: How Generative AI Augments, but Doesn’t Replace Active Management
AI, with its data analysis and predictive power, can revolutionize investing. However, humans remain a crucial part of the process. Franklin Templeton Investment Solutions provides use cases into how different investors can harness AI to achieve their desired outcomes and workflows.
Anatomy of a Recession Update: What Is a Recession, Exactly?
Hear from Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, about the state of the US economy. Get his perspective on the Federal Reserve’s next potential moves.
Alternative Allocations: The State of the Alternative Investments Industry
In this first episode, Franklin Templeton Institute’s Tony Davidow discusses the democratization of alternative investments and related topics with CAIA’s John Bowman.
Investment Ideas—Building Portfolios During Economic Uncertainty
Tony Davidow, Senior Alternatives Investment Strategist, at Franklin Templeton Institute, shares some takeaways from a panel discussion on the topic.
Time to Snag UK Equities From the Brexit Bargain Bin?
Dina Ting, Franklin Templeton ETFs’ Head of Global Index Portfolio Management, explores the positive trends that are making a case for holding UK equities.
Dimensions & Insights: Blockchain and Fintech Expand With Diversity and Inclusion
Chief Diversity Officer Regina Curry and Franklin Templeton Head of Digital Assets Roger Bayston believe creating workplaces with intentional collaborative, inclusive, and debiasing practices can power great development environments.
Quiet Shifts in Corporate Debt May Explain This Year’s Big Economic Surprise
The resilience of US growth, earnings and markets has been the big surprise of 2023. Stephen Dover, Head of Franklin Templeton Institute, opines on the factors at play—and whether they will last.
Franklin Templeton Institute: Q3 Investment Ideas
In this quarter’s issue of Investment Ideas, our investment managers review opportunities and risks from a US perspective.
- Overall trend: invest cash reserves in fixed income and more.
- In fixed income, investment-grade credit looks attractive to us given characteristics of anticipated total return, income and risk.
- Within equities, concentrated results today lead to opportunities across the equity universe tomorrow.
- In alternative investments, prevailing conditions are shifting from challenging to encouraging for private investors.
Jackson Hole—Limited Visibility, Bumpy Landing
In the wake of the Federal Reserve’s annual gathering in Jackson Hole, Stephen Dover, Head of Franklin Templeton Institute, conveys one clear message: interest rates aren’t coming down anytime soon.
On My Mind: The Structural Shift That Wasn’t
Markets seem to be coming around to our Franklin Templeton Fixed Income CIO Sonal Desai’s view that the Fed will have to keep interest rates higher for longer, but now runaway fiscal deficits pose further upside risk to yields in the long term, she warns.
Workplace Retirement Voice: Adding the Two “P”S to the Three “F”S
The advisor of the future needs to embrace a new value proposition, according to John Kutz, Head of Workplace Retirement Distribution at Franklin Templeton. This means moving beyond the “three F’s” and taking a more holistic approach to changing client needs.
Three Value Equity Themes for the End of 2023
Christian Correa, Chief Investment Officer of Franklin Mutual Series, discusses his team’s top three themes for the back half of 2023: a less-gloomy US macroeconomic outlook, real asset investment and Japan’s rising sun.
Don’t Miss the Return Opportunity in Fixed Income
Given the current economic backdrop, where can investment opportunities be found, particularly within the fixed income asset class? Head of Franklin Templeton Institute Stephen Dover shares his key takeaways from a panel discussion that he moderated with fixed income experts within the company.
Meet the Manager: Sandy Kaul
Franklin Templeton’s Head of Digital Asset & Investor Advisory Services Sandy Kaul has a wealth of experience in the financial industry and a vision for the future in the digital asset space. She finds the trend toward democratizing new investment frontiers exciting. Learn more about Sandy in this Q&A.
A Swift History of ETF Eras
What might the sensational superstar Taylor Swift have in common with exchange-traded funds? David Mann, our Head of ETF Product and Capital Markets, lightheartedly examines the different eras of the ETF industry—drawing parallels to Swift’s memorable eras as a musician.
Evolution & Revolution: Understanding Web3 and Digital Assets
Franklin Templeton’s new digital assets primer provides in-depth information on these new concepts and terminologies. In this article, Sandy Kaul, Head of Digital Asset & Industry Advisory Services, summarizes each section in the primer.
K2 Hedge Fund Strategy Outlook: Third quarter 2023
The current environment looks favorable for equity market neutral, global macro and insurance-linked securities, according to K2 Advisors. The team offers its mid-year outlook for these and other hedge fund strategies.
Japanese Stocks—in the Land of Rising Dynamism
Mutual Series’ Christian Correa and Mandana Hormozi believe the Japanese equity market is finally benefiting from reforms, inflation, and efforts to push companies to focus on growth and improve their valuations.
Quick Thoughts: Artificial intelligence—A Primer
Looking at the potential benefits, risks and societal changes of artificial intelligence from an investment lens with Stephen Dover, Head of Franklin Templeton Institute.
Running of the Bulls
Equity markets have rallied since October, but the Franklin Templeton Investment Solutions team thinks markets have run ahead of both current and expected growth. Learn why—and what it may mean for investors.
Cautiously Optimistic on Commodities
While caution in some areas of the commodities space may be prudent, there are also reasons for optimism, according to Fred Fromm, portfolio manager, of Franklin Equity Group. He offers his mid-year outlook and potential investment opportunities.
Quick Thoughts: The Sovereign Debt Wave—an Existential Threat
The Sovereign Debt Wave is at a historic peak and appears set to continue growing. With higher inflation and reduced liquidity, some countries will be able to continue to issue debt easily, while some will not.
Quick Thoughts: Impacts of ceilings, tightening and liquidity
Head of Franklin Templeton Institute Stephen Dover recently moderated a panel of our leading economists and asked this key question: What’s in store for investors in the second half? Here’s a quick take on their answers.
Technology Advancements Driving Opportunities in Health Care
Health care’s innovation-driven growth and inherent resilience makes it a natural fit for dividend growth investors, according to Franklin Equity Group.
Navigating Inflationary Seas—A Study of Central Banks in the United States, Europe and Asia
With inflation still front and center and tight labor markets, how will central banks react to the challenging market environment?
Dimensions & Insights: How To Drive Innovation and Growth From Everywhere
Diversity, equity, and inclusion (DEI) practices drive growth and groundbreaking innovation. As business change accelerates, deploying intentional DEI actions develops diverse thinking and new ideas that can break new ground and build business resiliency.
An Attractive Deal Awaits Small Businesses When Starting a Workplace Retirement Plan
Small business owners without workplace retirement plans now may take advantage of expanded tax credits if they establish one, according to John Kutz, National Retirement Plan Strategist at Franklin Templeton. He outlines recent regulatory and legal developments.
International Value Investing Makes a Comeback
After years of lagging behind the tech-heavy US market, Franklin Mutual Series sees international value stocks coming back into the spotlight over the coming years as the traditional economy comes into sharper focus.
Alternative Allocations: Opportunities in Commercial Real Estate
While the financial media has focused on the headwinds for commercial real estate and the challenges the office and retail sectors face, this narrative ignores the differences across sectors and the potential opportunities available in today’s market environment, according to Franklin Templeton Institute’s Tony Davidow.
ETFS, Electric Cars and Market Cannibalization
Exchange-traded funds are certainly popular with investors—here’s a look at how they can coexist in harmony with other investment vehicles, from David Mann, Head of ETF Product & Capital Markets.
Using Avoided Emissions To Build the Case for Investing in Climate Change
Activities that help companies avoid emissions are an attractive investment opportunity, according to Templeton Global Equity Group Portfolio Manager Craig Cameron. By actively seeking opportunities to reduce emissions, he says investors can align themselves with sustainability goals that contribute to a low-carbon economy.
REITs: Ever changing, Ever Valuable
Franklin Equity Group Portfolio Managers Blair Schmicker and Daniel Scher reflect on the ever-evolving landscape of the commercial real estate, and the answer to that question might surprise you.
Positioning for a Timely Opportunity in Munis
As markets continue to respond to an uncertain macroeconomic environment, the current fundamentals in the municipal bond market are creating an investment opportunity to capture strong after-tax total returns according to Stephen Dover, Head of Franklin Templeton Institute.
Debt Ceiling to Markets—I’ll Be Back!
The debt ceiling crisis has been averted—but this short-term relief might come at the cost of greater future peril. Franklin Templeton Fixed Income CIO Sonal Desai analyzes the debt-ceiling resolution and delves into the potential longer-term risks that rising public debt poses to financial markets.
Alts Angle: Disruption Creates Opportunities
The collapse of Silicon Valley Bank will likely lead to tighter credit conditions as banks pull back from lending. Private credit managers are poised to fill the void that banks have left and can negotiate favorable terms, according to Franklin Templeton Institute’s Tony Davidow.
Alts Angle: Rethinking Retirement With Alternative Investments
Tony Davidow, Senior Alternative Investment Strategist with Franklin Templeton Institute, illustrates the potential impact of adding alternative investments to pursue growth and income—as well as seek to dampen volatility—during the accumulation and distribution phases of retirement.
Beyond the Garden Variety of ETFS
Like planting seeds, sometimes new investment vehicles take time to take root. David Mann, Franklin Templeton’s Head of Global ETF Product and Capital Markets, draws parallels between gardening and developing and growing new ETFs.
An Overview of US State Budgets and Municipal Bonds
As COVID-era funding boosts come to a close, US state and local governments are facing some challenges. However, they have many tools with which to tackle them, according to Jennifer Johnston, Franklin Templeton Fixed Income’s Director of Research, Municipal Bonds. She provides her latest outlook.
What To Do When Stuff Happens
When markets turn volatile, it’s not time to despair. Stephen Dover, Head of Franklin Templeton Institute, offers some judicious perspectives on how to turn volatility into opportunity.
Age of AI
Artificial Intelligence (AI) is a key pillar of the digital transformation theme, which is driving significant disruption and spurring new growth. Grant Bowers, portfolio manager with Franklin Equity Group, offers a unique perspective of the challenges and benefits of this evolving and disruptive technology.
Preparing for a Pause
There is a disconnect between the Fed’s message regarding taking a pause in hiking interest rates this year and the market’s expectations of rate cuts.
A Continued Focus On Fixed Income Versus Equities
The longer-term risks of sticky inflation, monetary policy changes, and slowing economic growth continue to challenge the markets. Within this uncertain backdrop, Franklin Income Investors’ Ed Perks shares his latest outlook and the investment opportunities he sees across fixed income and equities.
Fed Pause Won’t Save the Day
If the Fed pauses, will that revive risk assets? Tom Nelson and Miles Sampson of Franklin Templeton Investment Solutions weigh in on the investment implications of the latest US central bank actions.
Women Changemakers in The Fintech Industry
In the spirit of being a good corporate citizen working to build a better world, Franklin Templeton is launching a Diversity, Equity and Inclusion (DEI) webpage that will highlight the company’s DEI efforts.
The Fed—Quantitative Tightening or Quantitative Easing?
Can central banks simultaneously provide liquidity to banks suffering sharp deposit withdrawals while also slowing money and credit creation by raising interest rates? In essence, can central banks quantitatively tighten and quantitatively ease at the same time?
Value Stocks—Now and Always
The value style is in the early stages of what Mutual Series believes could be a multi-year outperformance relative to growth.
The Case for Low-Volatility, High-Dividend Equities
Given market uncertainty and the risk of a US recession, is now the time for defensive stocks? Making a case for low-volatility, high-dividend equities with Franklin Templeton Investment Solutions’ Vaneet Chadha and Michael LaBella.
Macro Perspectives—Finding the Path to Normal
As central banks wrestle with how to respond to volatile economic data and banking turmoil, while also fighting inflation, Franklin Templeton’s economists provided their perspectives on what’s next for economic growth, interest rates, inflation and fixed income markets.
Three Weeks On, What Did We Learn From the Banking Crisis?
Implications of the ongoing volatility in the banking sector, and what it means for markets in Europe and globally—check out highlights from our most recent discussion with Kim Catechis, Investment Strategist, Franklin Templeton Institute.
Valuations or Earnings: Which is Most Important for Equity Returns in 2023?
The Franklin Templeton Investment Solutions team examines the earnings outlook for 2023, and why it might make sense to be defensively positioned.
Market Volatility and Developments in the Banking Sector
What are the implications of the ongoing volatility in the banking sector, and what does it mean for markets in Europe and globally?
How Is the SVB and Credit Suisse Crisis Affecting the US and European Banking Industry?
Following recent efforts by central banks and regulators to alleviate the banking crisis, Franklin Templeton Institute’s Stephen Dover and Lukasz Kalwak discuss their thoughts on the implications and outlook for the banking industries in the United States and Europe.
The Crucial Questions
To help understand the current market volatility arising from the collapse of banks in the United States and Europe, Head of Franklin Templeton Institute Stephen Dover provides his answers to three crucial questions.
Don’t Bank On It
Financial markets seem to have returned to trying to time a dovish Federal Reserve turn, but Franklin Templeton Fixed Income CIO Sonal Desai says with a tight labor market and inflation running at 5%-6%—don’t bank on it.
Muni Bond Update: Credit Quality Still Looks Strong
While 2023 has started on shaky ground for the municipal bond market, there are reasons to be optimistic for more stability ahead, according to Jennifer Johnston, Franklin Templeton Fixed Income’s Director of Municipal Bond Research. She explains why California’s issues don’t reflect all states, and offers reasons for optimism.
Is Normal Really What We Want?
Tighter monetary policy can lead to inverted yield curves, but is a recession inevitable?
Outlook for US Fixed Income and Equities Amid Tighter Financial Conditions
Following the 25 basis-point (bp) increase that the Fed announced on February 1, 2023, Franklin Income Investors Chief Investment Officer Ed Perks answered questions about his outlook on US interest rates as well as fixed income and equity securities for the rest of 2023.
Financial Independence Remains a Top Priority Despite Employee Feelings of Financial Anxiety
US workers are clearly feeling the strain of economic uncertainty, according to Franklin Templeton’s third annual “Voice of the American Worker” study.
Evolution & Revolution: Five Technology Megatrends Impacting Society
Technology megatrends transform society, and there is a hugely significant fourth wave on the horizon.
Investing for the Next Decade
Franklin Templeton recently hosted an investment forum in Singapore, and much of the dialog pointed to a growing gap in growth outlook emerging between Asia and the West.
De-globalization—Myth or reality?
Is globalization truly dead? Stephen Dover, head of Franklin Templeton Institute, explores what drives globalization, whether we are currently in a “de-globalization” wave—and what it means for investors.
Real Estate Investment Opportunities Amid Macro Uncertainties
Macro uncertainties and tightening financial conditions are pressuring the real estate investment market. Tim Wang, Head of Investment Research for Clarion Partners, discusses the challenges and opportunities in this current environment.
End of a Golden Era for Profits?
If the prolonged period of declining and ultra-low interest rates is over, what does that mean future corporate profits, cash flows and dividends?
K2 Hedge Fund Strategy Outlook: Fourth Quarter 2022
From an investment standpoint, aggressive regime shifts like the current one often create price dislocations as allocators restructure their portfolios, according to K2 Advisors.
Student Loan Forgiveness Plan and Inflation Reduction Act: Are These New Policies Inflationary or Deflationary?
Inflation is top of mind for consumers and market participants. In the United States, many are questioning whether student loan forgiveness will make inflation worse, and if the recently passed “Inflation Reduction Act” will offer relief.
Communications Breakdown: The Great Subscriber Shuffle
In the first of a two-part series on the communications services sector, Mandana Hormozi of Franklin Mutual Series breaks down the streaming wars and uncovers hidden opportunities she sees within the rubble.
The Fed Capitulates
The Fed raised interest rates by 75 basis points in its June policy meeting, acknowledging continued upside surprises on inflation, inflation expectations and wage growth.
The Future of Food is Technology
In our new piece from the Franklin Templeton Institute, we examine the challenge of feeding a growing global population in the midst of climate change, geopolitical shocks and uncertainty.
Quick Thoughts: Global Investor Forum 2022
The Franklin Templeton Institute hosted the Global Investor Forum last week in New York featuring internal and external speakers with expertise across economics, history, foreign policy, sustainability and investment management.
On My Mind: Overdue Reality Check for Fed and Markets Has Barely Begun
Investors’ expectations that interest rates will not rise much may be very misguided.
Moneyball: The Art of Analysis in ETF Trading and Liquidity
What does baseball have in common with exchange-traded funds (ETFs)?
Quick Thoughts: Commodities, Wages and Supply Chains—How Geopolitics Are Reshaping the Global Economy
The war in Ukraine is shifting the conversation on what a post-COVID-19 world will look like.
K2 Hedge Fund Strategy Outlook: Second Quarter 2022
The Russian invasion of Ukraine has added pressure to the inflationary cycle that began in late 2020.
Are Central Banks Too Slow to Tackle Inflation?
Are the reserve banks too slow in tackling inflation? Will inflation level off by itself? Will rising rates cause a recession?
Quick Thoughts: Are Central Banks Too Slow to Tackle Inflation?
Are the reserve banks too slow in tackling inflation? Will inflation level off by itself?
Fed Pivot Becomes Fed Prayer
The US Federal Reserve is turning increasingly hawkish—hiking rates fast enough to slow inflation while maintaining economic growth will be a monumental task.
Gold, Inflation and Geopolitical Tensions
Many investors see gold as a sort of haven in times of turmoil, and prices have surged amid Russia’s invasion of Ukraine.
On My Mind: The Fed Takes the Red Pill
The Fed struck a hawkish tone at its latest meeting, but Franklin Templeton Fixed Income Chief Investment Officer Sonal Desai believes it still underestimates how far rates will likely need to rise—and so do the markets.
The Uncharted Greenspace in Small-Cap ESG
Lead Portfolio Manager Steve Raineri and ESG Lead John Chow of the Franklin Small-Cap Value Team within Franklin Mutual Series discuss small company ESG investing, why it presents an opportunity and how ESG analysis helps investors become better stewards of client capital.
As Rates Rise, Financials Can Shine
Mutual Series’ analysts see value opportunities in the financials sector as the interest-rate environment turns more favorable in the United States and European banks see greater clarity about the impact of the Russia-Ukraine war.
Quick Thoughts: Energy Prices: Over the Barrel
Head of Franklin Templeton Investment Institute, Stephen Dover, hosted a special webinar to discuss rising oil prices and the fundamentals that would impact them in the future.
Clearing the Inbox: ETFs that Hold Only Russian Equities
Exchange-Traded Funds (ETFs) holding only Russian equities have had creations suspended and trading halted since the war in Ukraine commenced.
Energy Markets in View
Consumers were feeling the pinch of higher energy prices even before Russia invaded Ukraine. Energy prices have surged to multi-year or record highs amid the war, and many are wondering if they still have further to go. Here, Franklin Equity Group’s Frederick Fromm shares his latest views on investing in the sector.
The Supply-Chain Storm: Planes, Cranes, and Automobiles
Supply-chain issues are often cited in the current debate about inflation—and aren’t going away as quickly as consumers and businesses would like. Our Franklin Templeton Investment Solutions team explores how supply chains became stuck, whether they will loosen up in 2022, and the implications for multi-asset investors.
Where Are the Workers?
As the Federal Reserve debates its monetary tightening timeline, the labor market is an important factor to watch in the year ahead, according to our Franklin Templeton Investment Solutions team. Read their thoughts on the labor market’s implications for both monetary policy and risk assets.
ETF 2021 Year-End Report Card: The Grades Are in!
As another year of living with COVID-19 draws to a close, David Mann, Head of Global Exchange-Traded Funds (ETFs) Capital Markets, looks back on how the industry has fared in 2021—and how his prior predictions have unfolded.
Quick Thoughts: What Our Managers Think: Positioning Portfolios for 2022
Stephen Dover, Head of the Franklin Templeton Investment Institute, recently discussed growth, inflation, interest rates, and valuation...
On My Mind: Fed and Inflation: You Can’t Always Get What You Want
The Fed seems to have been caught by surprise by its own policy and says this is not the inflation it was looking for.
The Liquidity Unicorn: Are any ETFs Truly Bulletproof During Market Stress?
In the ongoing discussion about liquidity and exchange-traded funds (ETFs), David Mann, Head of Global ETFs Capital Markets, examines a recent report outlining how ETFs have navigated the pandemic.
2022 Market Outlooks on Equites, Fixed Income, Real Estate
Insights from Franklin Templeton specialist investment managers Brandywine Global, Clarion Partners, ClearBridge Investments and Western Asset
On My Mind: Inflation: Don’t You (Forget About Me)
The US Federal Reserve finally acknowledged inflation is not a “transitory” problem and signaled a greater degree of concern; but investors seem to think that the Fed will blink when markets balk.
Gifts for a Brighter Future
Instead of purchasing the latest toy or electronic gadget for your children or grandchildren, what about giving them something that will last a lifetime and isn’t in limited supply: the gift of a more secure future. Sandra Palmer, Head of 529 Distribution for Franklin Templeton’s 529 College Savings Plan, discusses how crowdfunding can help finance a college education.
(ETF) Anniversaries and Taxes
As we celebrate the holiday season and ponder what we are thankful for, it’s also time to take stock of one’s investments. Here, David Mann, Head of Global Exchange-Traded Funds (ETFs) Capital Markets, opines on an ETF anniversary he’s thankful for—and offers some tax-planning food for thought.
Muni Impact of US Infrastructure Bill Could Prove Longer Term
While the new US infrastructure investment bill didn’t have any initiatives directly targeting the municipal bond market, there are still implications for munis in the longer term, according to our Municipal Bond Director of Research Jennifer Johnston. She explains the ramifications for investors in the space.
Inflation Insulation: Navigating the Nuances of Inflationary and Rising-Rate Environments
Moderate inflation can be good, especially for some value stocks. Christian Correa breaks down why investors should not be afraid of the current inflationary or rising rate environments and explains how they can actually help some businesses and areas of the equity market.
What Our Managers Think: Do Growth or Value Stocks Have the Upper Hand?
While “growth” and “value” have typically been seen as distinct styles, that type of thinking continues to evolve, according to our investment professionals.
High Time for High Yield?
Bill Zox and John McClain, portfolio managers with Brandywine Global, join Amer Hasan to discuss how current market and economic conditions could benefit high yield investors, the opportunities and risks right now, and why the asset class is often overlooked or misunderstood.
Japan: A New Quiver of Arrows?
With a new Prime Minister taking the helm in Japan, what does the future hold? Franklin Templeton Investment Solutions’ Gene Podkaminer and members of the research team take a look at both local and global trends influencing Japan—and why investors should pay more attention to the country.
Quick Thoughts: Inflation, Debt, and Changing Economic Sweet Spots
Investors need a more flexible, opportunistic approach to investing, given the current low interest rate environment with the likelihood of interest rates rising over the next few years, according to Stephen Dover, Head of Franklin Templeton Investment Institute. He opines on inflation, debt, and changing economic sweet spots.
The Connection Between Climate Change and Geopolitics
Successful international investing includes measuring financial risks and rewards caused by events in an affected country. Stephen Dover, Head of Franklin Templeton Investment Institute, discusses how macroeconomic and political research complemented by environmental, social and governance (ESG) research provides investors additional prisms to view a country’s financials, impacts on climate change, and geopolitical risk.
On My Mind: To Work or Not to Work...
Of all recent economic trends, sluggish employment growth is perhaps the most important for investors to watch, says Franklin Templeton Fixed Income CIO Sonal Desai. She outlines why the labor market has been sluggish, and why it may remain that way for some time.
To Work, or Not to Work
Of all recent economic trends, sluggish employment growth is perhaps the most important for investors to watch, says Franklin Templeton Fixed Income CIO Sonal Desai. She outlines why the labor market has been sluggish, and why it may remain that way for some time.
Is the Energy Price Surge “Transitory” or a Longer-Lasting Trend?
Energy prices have surged to multi-year highs amid the global economic recovery from COVID-19, contributing to larger-than-anticipated jumps in measures of headline inflation. While some policymakers had suggested inflationary forces would prove “transitory,” today many are questioning that thesis.
Thinking Holistically About ESG
In this excerpt from our latest “Global Investment Outlook,” Franklin Equity Group Portfolio Manager Serena Perin Vinton discusses how her team thinks about environmental, social and governance (ESG) investing and the opportunities in investment-driven innovations levered to a more sustainable environment.
Debating the Next Moves for Inflation, Growth, and Rates
Rising inflation globally raises the question of whether inflation is persistent versus transitory, driving debate among our investment managers. Our Stephen Dover, Head of the Franklin Templeton Investment Institute, recently discussed economic growth, interest rates, and inflation during a roundtable,
Are We at the Inflection Point of Climate Change Investing?
The rise of environmental, social and governance (ESG) investing is nothing short of extraordinary, according to Yu Meng, Chair of Asia Pacific at Franklin Templeton. As we are constantly reminded by extreme climate change events, he says urgent actions are required from all of parts of society and the economy, including the financial markets.
Coalition Politics: Compromise is Key to Funding Germany’s Future
A three-party coalition could soon govern Germany for the first time in the country’s history following recent elections. Matthias Hoppe, senior vice president and portfolio manager, Franklin Templeton Investment Solutions, believes uncertainty caused by coalition talks is likely to increase volatility in Europe’s financial markets, but changing a conservative attitude to public spending is the real challenge for a new government as Germany wrestles with the reality of increasing macro-economic imbalances and a stated aim to achieve carbon neutrality by 2045.
Making It Last: Advanced Retirement Income Strategies for Everyday Investors
Investors spend a lifetime building a retirement nest egg. But once they retire—will it last?
Making It Last – Advanced Retirement Income Strategies for Everyday Investors offers key insights for developing a sustainable retirement income strategy for clients.
Greener Post-Election Germany Likely, but Limited Fixed Income Impact
The German election resulted in change in party leadership, but market impact should be limited, according to David Zahn, our Head of European Fixed Income. He shares an overview of the election implications.
Digital Trends Impacting Investors and Advisors
Investors and financial advisors alike want to understand the fascinating trends that are transforming the investment industry.
Addressing Undiversified Risk
When diversification is a core principle for successful investing, what stops women from offering their talents in finance and investment careers?
Paradigm Shifts Impacting the Investment Landscape: China, Inflation and Monetary Policy
There are several “paradigm shifts” impacting markets today, according to Templeton Global Macro CIO Michael Hasenstab. He outlines how central banks might approach tapering of pandemic-driven asset purchases, and the potential investment risks and opportunities he sees.
High Yield Bonds in View: The Impact of Inflation
Our high yield corporate credit team has been monitoring how inflation is impacting various market sectors, with an eye on four factors: input cost inflation, pricing power, impact to earnings and repricing vulnerability.
On My Mind: Just a Flesh Wound?
Prices continue to climb, with the US CPI rising in June by the most since 2008.
US Infrastructure Plan and Muni Bond Update
In May, our municipal bond team published some thoughts on US President Biden’s $2 trillion infrastructure package called “The American Jobs Plan.” As this package makes its way through Congress, the team will provide updates—here’s the latest from our Muni Bond Director Jennifer Johnston.
Quick Thoughts: Think Quantum with Cybersecurity
Our Chief Market Strategist Stephen Dover explores how quantum computers will soon unlock and slice through infrastructure and financial systems’ public key cryptography.
K2 Advisors Third Quarter Hedge-Fund Strategy Outlook
Heading into the second half of the year, pandemic concerns are not completely in the rear-view mirror.
The concept of retirement has changed over the decades—as have the ways of funding it.
Quick Thoughts: Sourcing Income in Bonds, Real Estate, and Multi-Asset Solutions
Sir John Templeton famously said that “this time is different” are the four most dangerous words for investors.
Examining the Environment for Microcap Stocks
The smallest companies in the market may be overlooked by many investors, but can offer big potential. Here, we posed some questions about micro-capitalization (microcap) stocks to Franklin Mutual Series Portfolio Manager Oliver Wong, who explains how they have fared recently and where he’s finding opportunities.
High Yield Bonds in View: Energy
Much has changed since the oil-market collapse in the early pandemic days of 2020, when prices actually turned negative. Franklin Templeton Fixed Income Research Analyst/Portfolio Manager Bryant Dieffenbacher looks back at industry developments since then, and outlines opportunities he sees in the high-yield energy bond market today.
Come Together: Why Merger Arbitrage Strategies Deserve Renewed Attention
Despite historically high market valuations, merger and acquisition activity remains subdued.
Inflation: The Devil We Knew
Our Fixed Income CIO Sonal Desai has been ahead of the curve in flagging the risks of inflation and rising rates that have now entered the mainstream debate.
Coming Out of COVID-19: A Look at Interest Rates and Inflation in Europe
There is hope that economies will see a more sustainable and robust recovery this year, given unprecedented levels of monetary and fiscal stimulus and as more individuals are vaccinated against COVID-19. But one question for investors is what happens next—will inflation and higher interest rates be a consequence?
The Birth of Global Tech Continues
From cloud computing and automation to self-driving cars, technology continues to be one of the world’s hottest sectors. Our Chief Market Strategist Stephen Dover and Portfolio Managers Donald Huber and John Remmert believe active investing in technology and innovation is a global story, and government support and spending in next-generation technologies is likely a long-term positive.
A Value Investor’s View on US Small-Cap Stocks
Franklin Small Cap Value Fund Portfolio Manager Steve Raineri discusses why he thinks the near-record underperformance of higher-quality, profitable small-capitalization (small-cap) value stocks relative to lower-quality, unprofitable companies could present a compelling opportunity for longer-term investors as the US economy continues to recover from the COVID-19 pandemic.
COVID 19 Disrupts Municipalities—Will Taxing Millionaires Accelerate Outmigration?
Apart from some high-profile downgrades, the muni credit markets finished 2020 buoyed by breakthrough vaccines and signs that state and local tax collections were better than anticipated.
There’s Much More to Tech Investing than the US Market
Although US technology equities tend to dominate the conversation about technology investing, Franklin Equity Group’s John Remmert and Don Huber believe there are many innovative international technology companies that tend to get overlooked.
Our Chief Market Strategist Stephen Dover believes cryptocurrency (crypto) is evolving into its next cycle of innovation. As an integral foundation for an alternative financial and internet ecosystem, crypto’s disruptions, opportunities, risks, and long-term implications are worth watching.
Global Equities: Four Things We Are Watching in 2021
Stephen Dover, our Chief Market Strategist and Head of Franklin Templeton Investment Institute, shares four investment themes he’s thinking about as the world recovers from the COVID-19 pandemic.
Investment Strategies for a Booster-Shot Recovery
Our Fixed Income CIO Sonal Desai shares her investment views and strategies for the post-pandemic recovery. She explains why inflation looks likely to gain steam, and how the balance of fundamentals and valuations become especially crucial today when looking for attractive returns in fixed income.
ETFs, Message Boards and Volatility
Internet message boards are lighting up and certain stocks have seen some unusually dramatic price moves. David Mann, our Head of Global Exchange Traded Funds (ETFs) Capital Markets, ponders whether ETFs could be subject to similar volatility.
A Taxing Subject: Tax Implications for US Investors Under Biden
Changes in government inevitably bring new priorities and policies, one being the area of taxes. Fiduciary Trust International Managing Director Craig Richards examines possible tax implications for individuals under President Joe Biden’s new administration.
European Fixed Income in 2021: Focused on Recovery, and Politics
While the calendar has turned to a new year, many of the same uncertainties of 2020 still linger—namely the COVID-19 pandemic.
Why the Future Still Means Fossil Fuels, for Now
Despite some news reports that suggest the green ambitions of the US Democratic Party could spell doom and gloom for traditional oil and gas companies.
K2 Advisors First-Quarter Hedge-Fund Strategy Outlook
Our K2 Advisors team is optimistic about the opportunity set in the year ahead, and thinks that active management alpha will be key to success in 2021. Brooks Ritchey and Robert Christian provide the team’s first-quarter hedge-fund strategy outlook.
On Georgia Elections: Stimulus for Individuals and Infrastructure
The US state of Georgia held January runoff elections that determined two Democrats as their US senators, giving the Democratic Party control of the legislative and executive branches through 2022.
ETF 2021 Outlook: Watch out for International Equity and Active ETFs
Most people are probably happy to waive goodbye to 2020 amid the COVID-19 pandemic, which played out in ways few could have possibly predicted. David Mann, our Head of Global Exchange-Traded Funds (ETFs) Capital Markets, isn’t going to make predictions about vaccines, mask-wearing or other such matters, but does offer his insights on ETF industry trends he sees taking shape.
Europe's "Man on the Moon" Moment
Brexit Deal Finally Struck as 2020 Comes to a Close
The United Kingdom and European Union finally put Brexit to bed, striking a deal in the final days of 2020. While the deal may not be perfect for either side, David Zahn, our Head of European Fixed Income, says the markets welcomed the removal of uncertainty.
ESG Will Define the Post-COVID Era
Templeton Global Macro CIO Michael Hasenstab offers the team’s 2021 outlook.
A Year-End Report Card for 2020 ETF Industry Predictions
As a very difficult 2020 draws to a close, David Mann, Head of Capital Markets, Global Exchange-Traded Funds (ETFs), once again looks back on some of the industry trends he had predicted would likely unfold this year. How many came to fruition? And which missed the mark?
Short-Term Uncertainties as COVID-19 Cases Spike
As regional lockdowns loom in light of a renewed spike in coronavirus cases, the near-term outlook may be a bit bumpy, says Gene Podkaminer, Head of Research at Franklin Templeton Investment Solutions. He explores the potential market implications of renewed lockdowns and comments on how vaccine availability might affect a future economic recovery.
A Small-Cap Value Analyst’s View on US P&C Insurers
Franklin Small Cap Value Fund Assistant Portfolio Manager and Research Analyst Nick Karzon gives five reasons why we continue to see attractive long-term opportunities for select small-capitalization (small-cap) P&C insurers.
US 2020 Election Investment Pulse: Why Fixed Income Now
With yields near zero, many investors may question the value of fixed income within a portfolio. Western Asset’s Head of Product Management, Doug Hulsey, joins our Head of Equities, Stephen Dover, to discuss fixed income investing with an active-management lens. He makes a case for the asset class for investors in light of market uncertainties and outlines where he sees opportunities today.
US 2020 Election Investment Pulse: Neutral to Positive for Municipals
In coming years, US Congress and the Biden administration could implement spending programs and tax reforms at the national level that trickle down into state and local government policies too. Our Katie Klingensmith joined Muni Bond Team Research Director Jennifer Johnston to discuss the potential implications for the municipal bond market, against a backdrop of COVID-19.
Knowledge Drives Confidence, Confidence Drives Growth
The Franklin Templeton–Gallup Economics of Recovery Study has heralded some interesting results in regard to the attitudes and behavior of Americans in response to the ongoing pandemic—and what developments could change both.
US 2020 Election Investment Pulse: Policy and Pandemic Drive Macro View
We’ve seen aggressive government and central bank support to stimulate economies sickened from COVID-19 slowdowns, but will the global economy right itself in 2021?
Optimism in Asia Drives Emerging Market Outperformance in October
Despite the COVID-19 pandemic, emerging markets have shown a continued appetite for structural reforms that could lay the foundation for lasting economic recoveries, according to our Emerging Markets Equity team.
US 2020 Election Investment Pulse: Time for Strategy Rotation
Global equity markets rallied on Monday after major networks declared Joe Biden the winner of the US presidential election, and early analysis of a COVID-19 vaccine from a large US drugmaker showed promising results.
Small But Mighty—Emerging Market Trends on the Cutting Edge of Change
Global equity markets remain enamored with technology giants despite seismic disruptions from the coronavirus. So far this year, market valuations for some industry titans have soared, albeit with some recent volatility. The same holds for a select few of Asia’s e-commerce and tech giants.
US 2020 Election Investment Pulse: How Shifting Attitudes Impact Recovery
In our latest Election Pulse, our Head of Equities Stephen Dover is joined by Franklin Templeton Fixed Income CIO Sonal Desai and Gallup’s Jonathan Rothwell to discuss survey findings on COVID-19 and its impact on the consumer. They discuss attitudes about vaccines, mask-wearing, and where they think the research may lead them post-election.
US 2020 Election Investment Pulse: The Only Certainty is Uncertainty
Head of Equities Stephen Dover joined Templeton Global Macro’s Katie Klingensmith and Fiduciary Trust Company International’s Gene Todd for a discussion about what they are keeping an eye on as investors.
US Elections, Global Stimulus, and 2021 Growth
Our Head of Equities, Stephen Dover, and Western Asset’s CIO, Ken Leech, believe global stimulus and the likely longer availability of zero or negative interest rates will support the path to growth in 2021. And China will continue its growth path to becoming a bigger part of the global financial community.
Student Housing: A Sector in Peril?
The ongoing COVID-19 pandemic has led to the closure or partial closure of many on-campus dormitories and privately run, offsite facilities. Against this backdrop of weakening demand and uncertainty around when college life may return to normalcy, our municipal bond team’s Vander Shanholt gives his take on the long-term challenges for student housing projects.
European Union Launches Social Bonds
The coronavirus pandemic has created many challenges for individuals, businesses and governments around the world. In Europe, there’s a new vehicle to help finance the economic recovery there—social bonds. David Zahn, our Head of European Fixed Income, discusses this exciting new bond issuance, earmarked for funding employment initiatives.
2020 US Elections and Personal Tax Considerations
Our Head of Equities, Stephen Dover, and Fiduciary Trust International Managing Director, Craig Richards, consider the US elections’ possible impacts to personal taxes. Both a “blue wave” or another Republican administration may encourage taxpayers and investors to start their 2021 tax planning now.
Muni Bond Perspectives on the 2020 Election
When many fixed income investors think about the November US election, they tend to focus on how the presidential and congressional race outcomes could affect national policies. However, our municipal bond team delves into state and local government elections, too. Here, they share their analysis of how election outcomes at all three levels of government could affect muni bonds.
The Post-Pandemic Case for International Markets
Our Dina Ting offers three reasons she and her team believe the case for international markets is once again strong, and opines on how recent market events have created new—or amplified existing—opportunities for investors to express views on specific countries.
Tax-Loss Harvesting: A Silver Lining for Single-Country ETFs?
While the subject of taxes would probably elicit a yawn as dinner party conversation (assuming dinner parties happen again at some point), it’s something many investors need to contemplate as year-end approaches.
K2 Advisors Fourth Quarter Hedge-Fund Strategy Outlook
Given elements of uncertainty tied to COVID-19, geopolitics and policy decisions to come in the United States and across the globe, our K2 Advisors team believes the current environment may favor nimble, shorter-term strategies.
Outlook and Implications for the Upcoming US Election
Given the United States is the world’s largest economy, investors around the globe will be watching the US presidential race—and market implications—with keen interest.
A Strong Recovery, Challenges Ahead
While the US economy has been staging a strong recovery from the COVID-19 pandemic, the challenge is far from over, says Franklin Templeton Fixed Income CIO Sonal Desai. She says the tug of war between the virus and the economy seems likely to continue until an effective vaccine is made available at scale.
Work, Life and Investing: How the Pandemic Is Shaping the Future
As economies reopen from COVID-19 lockdowns, there have been fundamental shifts to daily life and work, as well as the investment landscape.
Brexit Saga Meets Trade Roadblocks
The United Kingdom officially left the European Union in January of this year, but issues remain in the Brexit saga, namely trade relations. David Zahn, our Head of European Fixed Income, weighs in on the odds no deal will be reached by year-end—and the market implications.
Local Investors Discover Brazilian Stocks
The COVID-19 pandemic has been devastating for Brazil, but heavy government spending and monetary policy easing have helped bring some stability to the economy.
Still Looking for Alternatives? How about Real Assets?
Ed Perks and Gene Podkaminer of Franklin Templeton’s Multi-Asset Solutions team discuss the attractions of alternative assets that can offer natural portfolio diversification. Over a longer-term horizon, they continue to believe global stocks have greater performance potential than global bonds, or alternatives, but this outlook will not be reached along a smooth path.
A Value Investor’s View on US Small-Cap Stocks
Franklin Small Cap Value Fund Portfolio Manager Steve Raineri gives five reasons why he thinks small-capitalization (small-cap) value stocks could perform well as the US economy continues to recover from the COVID-19 pandemic.
Growing Optimism on a COVID-19 Vaccine Boosts Investor Confidence
Emerging markets overall felt a dose of optimism in August amid hopes for a COVID-19 vaccine, continued easy monetary policy globally and improving economic data pointing toward recovery. Our emerging markets equity team breaks down the key trends, news and events it has an eye on, and shares its latest market outlook.
Saving for Sunnier Days
The Franklin Templeton-Gallup Economics of Recovery Study has unveiled many insights about US consumer attitudes and behavior in the wake of COVID-19. Our Fixed Income CIO Sonal Desai examines findings from the survey’s second pulse, including encouraging signs confidence has found a floor.
Three Ways to View the Gold Rally from an Equity Viewpoint
Despite reaching all-time highs above $2,000 per troy ounce this summer, gold prices might still have room to run, according to Franklin Equity Group’s Steve Land. In addition, he shares some reasons why the current environment could present new opportunities for gold-focused miners to redefine themselves as stronger businesses.
Health Care: The Next Wave of Innovation in China
Our Emerging Markets Equity team’s Michael Lai and Elizabeth Wu take a look at a new breed of innovative enterprises in China that could transform health care outcomes in the years ahead.
US Election: Implications Across the Pond
This November’s US presidential election pits Donald Trump against Democratic nominee Joe Biden, a longtime politician who represents a more progressive policy approach. Our Head of European Fixed Income David Zahn breaks down the implications of the US election for Europe, and why many of Biden’s policies line up more closely with European views.
The Fourth Industrial Revolution Is Just Beginning
Many pundits have talked about “the Fourth Industrial Revolution,” but what does it mean? Franklin Equity Group’s Matt Moberg explains how the current pace of innovation is driving productivity gains—and accelerating economic growth.
Political Volatility Ahead
Our Head of Equities Stephen Dover explains why he thinks possible changes to the US political landscape could lead to further bouts of market volatility.
Innovation Is Everywhere: Five Platforms for Growth
There are five evolving growth themes that could generate considerable economic value over the next five to 10 years.
Time to Revise Outdated Perceptions of Russia?
Many investors seem to have misperceptions when it comes to Russia’s economy and the companies located there. Our Emerging Markets Equity Institutional Portfolio Manager Nicole Vettise explains how Russia’s economy offers investors a mix of old and new industries, and compelling areas of investment opportunity as a result.
Emerging Markets Outpace Developed Markets in July
Some emerging markets have been coping with the COVID-19 crisis better than others, and their economies are in different stages of recovery. Our emerging markets equity team highlights a few—and offers thoughts on why the pandemic has accelerated some existing fundamental and technological trends.
Active Investors Wake Up Before a Revolution
The world is waking up the 4th Industrial Revolution, with the impact of COVID-19 accelerating many changes already underway, says our Head of Equities, Stephen Dover. He opines on how underlying fundamental disruptions in our economy can present opportunities for active investors.
International Growth Opportunities Amid the COVID-19 Crisis
As the global economy continues to grapple with the COVID-19 pandemic, there are still opportunities for investors, says Franklin Equity Group Portfolio Manager Don Huber. He has an eye on international companies able to navigate the crisis period—particularly those in regions where recovery is happening faster.
They Blinded Us from Science
Our Fixed Income CIO Sonal Desai unveils the first insights from the new Franklin Templeton–Gallup research project on the behavioral response to the COVID-19 pandemic and implications for the recovery.
COVID-19 Crisis Accelerates the Digital Transformation Trend
Digital transformation was already underway prior to the COVID-19 pandemic, but the resulting economic crisis has caused an acceleration, according to Franklin Equity Group’s Jonathan Curtis. He shares where his team is looking for potential opportunities within technology during the current period and beyond.
ESG Gains Traction in China as Investor Base Expands
As China’s equity markets gradually open up to foreign investors, Chinese companies could face greater scrutiny, according to Franklin Templeton Emerging Markets Equity’s Michael Lai. He weighs in on some emerging trends he’s seen in regard to environmental, social and governance (ESG) issues there.
Testing the Recovery: A New Franklin Templeton–Gallup Project
The unprecedented nature of the COVID-19 economic disruption has made traditional gauges of economic developments woefully inadequate, says our Fixed Income CIO Sonal Desai. She highlights the need to look deeper into new ways of examining the path toward recovery...
Wall Street and Main Street Disconnect
Our Head of Equities, Stephen Dover, gives his take on how COVID-19 has accelerated economic changes and explains what may have caused the stock markets’ second-quarter ascent.
Emerging Markets: Opportunities and the Road Ahead
Our Emerging Markets Equity CIO Manraj Sekhon provides the team’s midyear outlook, including how secular trends driving opportunities in emerging markets have accelerated because of the COVID-19 crisis.
A Turning Point for Emerging Market Debt
With inefficiency comes opportunity, according to Franklin Templeton Fixed Income’s Nicholas Hardingham and Robert Nelson. They consider the emerging market debt landscape, and what the remainder of the year could bring for the asset class.
Emerging Markets Rally as Economies Reopen in the Second Quarter
The COVID-19 pandemic continues to impact economies across the globe as they emerge from lockdowns, including emerging markets.
K2 Advisors Third Quarter Hedge-Fund Strategy Outlook
Pricing dislocations and adjustments between companies, industries, regions and asset classes due to the impact of COVID-19 offer opportunities for select hedged strategies, according to K2 Advisors.
Responsible Investing in a Traditional Asset Class
In the municipal bond market, the issuance of green bonds has provided an attractive solution for investors interested in socially responsible investments while also receiving the tax-exempt income benefit municipal bonds offer. Franklin Templeton’s Municipal Bond team provides an overview of green bonds, including potential benefits and risk considerations.
State Budgets Hit a Bumpy COVID-19 Road—Analyzing Municipal Credit Pressures
For most US governors, June typically brings political fireworks when state legislatures hammer out final budgets for the next fiscal year.
“Build Back Better”: COVID-19 Brings the “S” From ESG Into Focus
Dislocations resulting from the pandemic shine a light on environmental, social and governance (ESG) issues, which can be used as an additional tool to identify leading companies from the laggards, according to Franklin Templeton’s Global Head of ESG, Julie Moret.
Fed Starts Buying Individual Corporate Bonds: An ETF Update
The US Federal Reserve (Fed) recently announced it would purchase individual corporate credit bonds. David Mann, our Head of Capital Markets, Global ETFs, makes a case for using smaller ETFs to accomplish that goal.
Disease and Debt Now: Dispersion Later?
Deficits are rising across the developed world as governments aggressively loosen their purse strings in response to the COVID-19 pandemic. But what are the ramifications of all this debt?
The New Emerging Market Landscape: The Single Commodity Focus Has Shifted
As emerging markets cope with the COVID-19 epidemic, Franklin Templeton’s Emerging Markets Equity team considers three new realities they see in the emerging markets today. This second post in a three-part series examines how emerging markets have diversified their economies.
Competing Priorities Impact Retirement Preparedness
Franklin Templeton’s 2020 US Retirement Income Strategies and Expectations survey revealed the importance of having a plan to help reduce financial-related stress—particularly relevant amid today’s uncertainties. Our Felix Touchard discusses some findings of the survey, and how respondents feel about their financial future.
Biotechnology Innovation During COVID-19
Innovation has always been a key driver for the biotechnology industry. Even in the midst of the COVID-19 pandemic, there is still significant progress in the discovery and development of innovative drugs.
Value vs. Growth? Yes, Both
Our Head of Equities, Stephen Dover, gives his take on why value and growth investing are not different strategies.
If You Open It, They Will Come
After the shock of COVID-19, when will the global economy return to a sense of normalcy? Franklin Templeton Fixed Income CIO Sonal Desai examines some key economic activity indicators in the wake of the pandemic. She shares data on recent changes in US consumer behavior which seem to signal people are eager to go back to normal life.
EU Delivers Comprehensive Fiscal Rescue Package
The European Commission has unveiled a sweeping new €750 billion coronavirus fiscal rescue package, including the issuance of new bonds. David Zahn, our Head of European Fixed Income, calls it groundbreaking.
Fed Support Helps Stabilize MBS Market
Like most asset classes, mortgage-backed securities (MBS) have seen heightened volatility over the past two months as the world copes with COVID-19 and investors look to reduce risk. The MBS market managed to stabilize amid help from the US Federal Reserve, which purchased these and other securities in a broad support program.
What’s Next for Markets as Lockdowns Lift: A Multi-Asset View
With markets starting to make a comeback, our Multi-Asset Solutions CIO Ed Perks looks ahead to second half of the year, including the implications of the US economy opening up, the ongoing impact of the massive monetary and fiscal response, and the risk for a wave of downgrades and defaults.
European Fixed Income: Coming Out of Crisis
As European economies slowly start to come out of coronavirus lockdowns, it could be some time before growth returns to pre-crisis levels, according to David Zahn, our Head of European Fixed Income. He says the crisis has been another test for the European Union...
A New Globalization Emerges (copy)
Our Head of Equities Stephen Dover gives his take on the new globalization, how the US Midwest may be the next emerging market, and what he thinks it means for strategic industries and supply chains.
A New Globalization Emerges
Our Head of Equities Stephen Dover gives his take on the new globalization, how the US Midwest may be the next emerging market, and what he thinks it means for strategic industries and supply chains.
Getting Back to Normal
The COVID-19 pandemic has changed how global consumers learn, shop, travel and work, as well as how they fulfill entertainment and health care needs. Franklin Equity Group’s John Remmert and Donald Huber share which trends they think are permanent and which are likely just a phase.
Now Let’s Get Those Jobs Back
COVID-19 has taken a toll on human lives as well as the global economy, with the latest US employment figures revealing a shocking number of job losses in April.
Coronavirus Pandemic Shifts Focus to ESG
The coronavirus pandemic has highlighted the importance of financial market risks that fit within the realm of environmental, social and governance (ESG) factors—namely disaster preparedness and health risks.
Building Credit-Ability: Additional Clarity on Fed ETF Buying
While there still isn’t complete clarity surrounding the Federal Reserve’s purchases of exchange-traded funds (ETFs), it did recently release a bit more information. David Mann, our Head of Capital Markets, Global ETFs, attempts to solve the mystery of which ETFs the Fed might be buying—and when.
Dividend Growth: A Hallmark of Quality More than Ever
Some market observers have speculated many companies could cut dividends as the COVID-19 pandemic continues to unfold. However, that doesn’t mean there aren’t still opportunities for yield-seeking investors, says Franklin Equity Group’s Nick Getaz and Matt Quinlan.
How to Think about Truing up Asset Allocations in Times of Market Stress
Some investors use a set-it-and-forget-it approach to their portfolios, but there are times when the asset mix may need to be recalibrated to achieve one’s goals.
Don’t Forget About Your Other Retirement Plan
As headlines revolve around the impact of the coronavirus and the costs of government spending packages to keep the economy afloat, the state of Social Security is one thing we can find at least some assurance in, says Gail Buckner, our personal retirement and financial planning strategist.
Municipal Bond Perspective: Where We Go from Here
As the COVID-19 pandemic evolved during the first quarter, the municipal bond market experienced one of its most volatile periods in years. Here, the Franklin Municipal Bond Department shares how they plan to navigate the market, which they think is likely to show signs of distress and elevated volatility for some time.
Fixed Income View: A Crisis Like No Other
When times of turmoil hit, most investors become risk-averse, seeking safety over opportunity for higher returns. The coronavirus-driven crisis is no different in that regard. However, John Beck, our director of fixed income, London, sees some striking differences between this and other crises, and offers some thoughts on where he thinks taking some risk today might make sense.
Promising COVID-19 Research Underway
Our Head of Equities Stephen Dover explains why he sees many signs of hope for a global recovery from the COVID-19 pandemic. He also shares highlights from a conversation between Templeton Global Equity Group CEO Dr. Sandy Nairn and Professor Gerry Graham, a world expert in immunology.
The Fed and Fixed Income ETFs: The ETF Issuer Spread Widens Further
As the ravages of the coronavirus reverberated through the global economy in March and into April, the Federal Reserve announced a number of measures to help provide relief to financial markets—one being the purchase of exchange-traded funds (ETFs).
K2 Advisors: Second Quarter Hedge Fund Strategy Outlook
The coronavirus pandemic has created a number of pricing dislocations within markets across the globe. In its second-quarter outlook, the K2 Advisors team takes a look at how hedge fund managers are navigating the current market environment and which strategies are finding opportunities from these dislocations.
The First (and Worst!) Quarter is Over: 9 Steps to Take Now
In the first quarter of 2020, stock markets across the globe experienced one of the worst quarters in the history of global financial markets. But maybe it’s time for investors to take a pause and do some strategic thinking...
Quick Thoughts: Focus on Consumers
Our Head of Equities Stephen Dover gives his take on what the continued business shutdown due to the COVID-19 pandemic could mean for US workers, particularly those who are not currently earning a paycheck. He also shares why oil prices could remain subdued for a bit longer, and why he thinks tech companies could come to the rescue of small business.
Taking a Long-Term View on Innovation
Franklin Equity Group’s Matt Moberg suggests looking beyond near-term market concerns and focusing on five technology-enabled themes that are likely to disrupt traditional business practices over the next decade.
Bringing the Economy Back from Life Support
With recent data showing a coronavirus-driven recession in the United States appears inevitable, the question for many investors is how long it will last. Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income, weighs in on the differences between this one and other recessionary periods—and whether policymakers can engineer a recovery.
Which ETFs Will the Fed Buy?
The US Federal Reserve announced it would buy exchange-traded funds (ETFs) as part of a range of measures to help support the markets in the wake of the coronavirus. David Mann, Head of Capital Markets, Global ETFs, examines which ETFs it might actually buy, and when.
US Equities: Taking the Long View Through Today's Uncertainties
While the US economy continues to suffer the wrath of the coronavirus, a recovery will eventually come. Franklin Equity Group's Grant Bowers provides his latest update on the US equity market, and what he and his team have an eye on with a long-term investment view.
Living on “COVID” Time
The coronavirus has forced a number of behavior changes throughout societies across the globe, including how we work, shop and interact with others. Our Head of Equities Stephen Dover discusses how COVID-19 has impacted investor decisions, too.
Navigating Emerging Markets During Uncertain Times: This Too Shall Pass
Even though economic activity in many countries has dramatically slowed or stopped due to the coronavirus outbreak, Franklin Templeton Emerging Markets Equity’s Andrew Ness still thinks there’s underlying long-term potential in emerging markets. He shares the specifics of what he’s on the lookout for as an investor in this highly uncertain period, which eventually will pass.
The Road to Premiums is Paved with Good Intentions: Perspective on the Fed and ETFs
The US Federal Reserve recently announced a number of measures to support the economy and markets amid the coronavirus crisis. One involves the purchase of fixed income exchange-traded funds (ETFs). David Mann, Head of Capital Markets, Global ETFs, shares his thoughts on the subject, and what he thinks is the best way to support the corporate bond market through these purchases
Biotech Progress in Addressing Coronavirus, but It Takes Time
With the coronavirus creating havoc across the globe, researchers are rushing to find better treatment options and a cure. Our Head of Equities, Stephen Dover, and Portfolio Manager Evan McCulloch outline a few of the efforts the medical and scientific communities are taking to combat the virus.
Times of Turmoil and Trouble Keeping ETF Score
During these turbulent times, how does one track and value the performance of an exchange-traded fund? David Mann, Head of Capital Markets, Global Exchange-Traded Funds, opines on ways to “keep score.”
More Heavy Lifting from the Fed—While Congress Squabbles
The US Federal Reserve continues to use whatever tools it can to help combat economic fallout from the coronavirus. Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income, calls its latest response “a whole new level” of stimulus.
US Equity Market Update on Recent Volatility: Three Reasons for Optimism
The impact of the coronavirus on the US economy still isn’t fully known yet, as the situation continues to evolve. However, Franklin Equity Group’s Grant Bowers sees at least three reasons to be optimistic about the long-term recovery.
Navigating the Muni Market in Today’s Environment
As coronavirus-related market volatility expands into municipal bonds, the Franklin Municipal Bond Department explains how they are navigating an increasingly challenging muni-market environment. They also share reasons why they believe a longstanding preference for high-quality municipal bonds supports their efforts to turn volatility into opportunity.
The Fed Speaks Loudly and Carries a Big Stick
The US Federal Reserve took dramatic action on Sunday, March 15, slashing interest rates and relaunching quantitative easing and other measures to battle the economic impacts of the coronavirus.
The Oil Price Plunge and Impact on Emerging Markets
Falling oil prices can be a double-edged sword in terms of economic impact: welcomed by consumers, but not by producers. Franklin Templeton Emerging Markets Equity’s Bassel Khatoun shares his thoughts on the impact of lower oil prices on emerging market economies and some considerations for investors
ETF Trading and Volatility: It’s All Relative
When markets turn volatile, some question the role of exchange-traded funds (ETFs) in exacerbating market moves. David Mann, our Head of Capital Markets, Global ETFs, offers some perspective.
UK Budget Ease Follows Coordinated BOE Rate Cut
Newly appointed UK Chancellor of the Exchequer Rishi Sunak tore up the fiscal rulebook and unveiled a spend-heavy UK budget, announced just after the Bank of England delivered an emergency interest-rate cut.
US High Yield Faces Double Whammy
Financial markets across the globe have been dealt a one-two punch—the spread of the coronavirus and an oil price war that caused prices to plummet. Glenn Voyles, Matt Fey and Bryant Dieffenbacher of Franklin Templeton Fixed Income examine the impact on high-yield credit.
Emerging Markets Hit by Spread of Coronavirus in February
Our Emerging Markets Equity team examines the impact of the spread of coronavirus across emerging market economies during the month of February.
What’s Driving Oil Market Volatility?
Franklin Equity Group’s Fred Fromm explains why recent oil market demand and supply shocks are essentially unprecedented and are leading to oil prices that are uneconomical for almost all market participants.
Viewing Volatility Versus Uncertainty Through an ETF Lens
Investors certainly have had to face both volatility and uncertainty these past few weeks given coronavirus concerns and other geopolitical risks. David Mann, our Head of Capital Markets, Global Exchange-Traded Funds (ETFs), talks about the difference between the two through the lens of ETF trading.
What’s Next for European Monetary Policy?
As European Central Bank (ECB) policymakers adjust the budget to reflect lighter eurozone economic activity, moderate economic growth and the United Kingdom’s departure from the European Union (EU), David Zahn, our Head of European Fixed Income, shares his macroeconomic outlook for the region. He weighs in on why the ECB could remain accommodative.
ESG Study: How Institutional Investors Embrace Responsible Investing
Responsible investing has gathered enough momentum in recent years to reach the mainstream. What is less clear is how far along global institutional investors are in the process of integrating environmental, social and governance (ESG) principles into their investment decisions.
The Fed Responds
The US Federal Reserve surprised markets on Tuesday with an interest-rate cut, but will it restore investor confidence? Franklin Templeton Fixed Income CIO Sonal Desai shares her initial reaction.
Why the MENA Region Can Survive US/China Trade Disputes
There are tangible signs economies in the MENA region have reformed and evolved over the past decade, according to Franklin Templeton Global Sukuk and MENA Fixed Income’s Dino Kronfol, and Franklin Templeton Emerging Markets Equity’s Bassel Khatoun and Salah Shamma. They outline the opportunities they see in the year ahead.
Coping with Coronavirus-Induced Market Volatility: A Multi-Asset Update
The spread of the coronavirus has created heightened market volatility in recent weeks, but the Franklin Templeton Multi-Asset Solutions team remains focused on long-term market fundamentals. Here, Ed Perks and Gene Podkaminer offer an update on how they are approaching the situation, and which countries appear more insulated to growth shocks.
Getting Comfortable with ETF Liquidity
Many people put a lot of thought into the purchase of an asset—whether it’s a car, an investment vehicle or even a more mundane item—but might not think as much about what happens when they don’t want it anymore.
Full Economic Implications of Coronavirus Largely Unknown
As markets continue to assess the impact of coronavirus (COVID-19), the Templeton Global Macro team shares an update on the economic and market implications, which they say could be more detrimental—and last longer—than many observers previously thought.
Five Reasons to Consider Investing in Small-Cap Value Stocks
Many investors overlook lesser-known smaller companies in favor of well-known behemoths, but there are some mighty values in small-capitalization (cap) stocks, according to Franklin Small Cap Value Fund Portfolio Manager Steve Ranieri. He outlines five things for investors to consider.
Implications of the Coronavirus for Natural Resource Investors
The coronavirus and the impact of containment efforts on global economic growth and oil demand is influencing investor sentiment and behavior, according to Franklin Equity Group’s Fred Fromm. Despite the outbreak’s near-term impact on commodity prices and natural resources stocks, he explains why he thinks the situation is likely to be manageable for most companies in the long run.
A Multi-Asset Approach to Assessing Risk and Opportunity in Emerging Markets
While there are a number of uncertainties in the global economy today, many investors may not realize the depth and breadth of potential opportunities emerging markets still offer—on both the equity and fixed income side.
Fears Over Virus Outbreak Curb Investor Optimism in January
Our emerging markets equity team looks at news and events shaping emerging market performances in January, from coronavirus fears to trade to Middle East tensions.
K2 Advisors: First Quarter Hedge-Fund Strategy Outlook
Pricing dislocations in Europe, performance dispersion across the credit spectrum and shifts in the political landscape should likely provide abundant opportunities for select hedge strategies in the year ahead, according to K2 Advisors. The team shares some macro themes and questions its focused on, and shares its outlook for various hedge strategies.
Closing the European Performance Gap
Although European equities performed well in 2019, there’s still a significant value and performance gap compared to US stocks, according to Franklin Mutual Series Portfolio Manager Katrina Dudley. Here, she gives reasons why she’s optimistic about the backdrop for European value stocks and discusses some potential market-moving events she’s monitoring.
Multi-Asset Implications of the Coronavirus Outbreak
The coronavirus outbreak that started in China could certainly be considered an unexpected market shock, one which looks to remain a concern for a while longer.
The UK Has Left the EU. What’s Next Post-Brexit?
It’s been 3-1/2 years since the United Kingdom voted to leave the European Union, and the process known as Brexit has been far from smooth. Now that the deadline to leave has passed, what’s next for the United Kingdom, and for Europe?
A Value Investor View of Market Dynamics and Potential Dislocations
Equities saw strong 2019 performances across the globe, so the big question for investors is whether the bullish momentum can continue. Templeton Global Equity Group’s Alan Bartlett and Tony Docal provide a look at what drove the positive performances around the globe in late 2019, and how they are poised to take advantage of any potential dislocations in the year ahead.
Municipal Bond Perspective: Approach High Yield with Caution in 2020
As we head into 2020, municipal bonds will likely remain attractive for many tax-sensitive investors, but their performance potential could prove to be relatively muted compared to 2019, according to Sheila Amoroso, director of our Municipal Bond Department.
Monitoring China’s Outbreak, and Other Potential Market Shocks
The Templeton Global Macro team takes a look at the implications of the coronavirus in China, and positioning for potential market shocks.
Oops! They QE’d Again
The US Federal Reserve (Fed) has gone back to expanding its balance sheet. Some claim that quantitative easing (QE) is back; the Fed denies it. What we call it isn’t the point, says Sonal Desai, Franklin Templeton Fixed Income CIO—what matters are the implications of this “permanently loose” policy stance for asset prices, investment strategy and market volatility.
Allocation Views: Taking a Nimble Approach to 2020
Although easing US-China trade tensions have renewed investor optimism about global economic growth, Franklin Templeton Multi-Asset Solutions’ Ed Perks and Gene Podkaminer still see some potential geopolitical headwinds on the horizon.
Taking a Long-Term View on Oil
Franklin Equity Group’s Fred Fromm gives his take on global oil markets amid elevated tensions between the United States and Iran.
On My Mind: Will the US Economy Survive the Politics in 2020?
The many gloomy predictions for 2019 did not come to pass, but can we be more optimistic for 2020? Franklin Templeton Fixed Income CIO Sonal Desai draws the key lessons from last year and outlines what we should expect for the year ahead and her main concerns, with political uncertainty top of the list.
Active ETFs, Small ETFs and Other Trends to Watch in 2020
As we kick off the new year, market prognosticators are busy making their 2020 predictions. David Mann, our Head of Capital Markets, Global Exchange-Traded Funds (ETFs), offers some thoughts on trends and milestones within the ETF industry he thinks could come to fruition in 2020.
Why Digital Transformation Should Remain Resilient in 2020
Franklin Equity Group’s Jonathan Curtis explains why he thinks businesses will need to invest significantly more in digital technology in the coming years to better understand and service their customers and to reduce costs.
SECURE Act Passage Heightens Retirement Security
A sweeping piece of legislation affecting how individuals save and invest for their retirement, known as the “SECURE Act,” has recently been signed into law. Our investment professionals talk about the implications of the Act, and how it can enhance the retirement security of millions of Americans. And, they outline some changes in the legislation that also affect college savings plans.
Global Investment Outlook: Coping with a Changing Market Landscape in 2020
Our senior investment leaders have a cautiously optimistic outlook for 2020. They still do not see a global recession looming and believe there are plenty of reasons to remain invested.
Outlook for Municipal Bond Investing
Municipal bonds can continue to provide a number of potential benefits for tax-sensitive investors as we move into 2020, according to Shelia Amoroso, director of Franklin Templeton Fixed Income Group’s Municipal Bond Department. However, following the strong results in 2019, she and the team expect total return potential to be muted in 2020, with likely increased volatility.
2020 Outlook for Emerging Markets Equity Investing
While US-China trade issues still haven’t been resolved, there are reasons to be optimistic about the prospects for emerging markets in the coming year.
Allocation Views: 2020 Appears Tilted to the Downside
While US-China trade tensions and other concerns prompt a cautionary stance when it comes to risk assets, Franklin Templeton Multi-Asset Solutions’ Ed Perks and Gene Podkaminer nonetheless remain positive about the US equity market in the year ahead, citing a number of long-term growth drivers that still remain in place.
A Fixed Income View of 2020: Separating Sentiment from Fact
Investors could be in for a bumpy year ahead, according to Franklin Templeton Fixed Income CIO Sonal Desai. She emphasizes the importance of separating the facts from the headlines, but also thinks it’s a good time to look to “de-risk” portfolios to some extent, while still remaining invested.
UK Election: Will Tory Victory Bring Investors Back to UK Equities?
As widely expected, the Conservative Party emerged victorious in the UK general election. Our Colin Morton anticipates UK equity markets will welcome the outcome, but cautions that some uncertainties remain.
Assessing Potential US Health Care Reforms Ahead of an Election Year
Health care reforms are always a popular topic of discussion ahead of a US presidential election campaign, where politicians talk about proposed changes that can be very different than the current system.
Emerging Markets Record Diverse Performances in November
It was a mixed month for emerging markets in November, as shifting expectations about a trade deal between China and the United States continued to drive market sentiment. Our emerging markets equity team explains why US-China trade issues may not be that big of a concern for some emerging markets, and provides an overview of the news and events shaping markets during the month.
What’s Ahead for the MENA Region?
As investors ponder the prospects for the Middle East and North Africa (MENA) region, Franklin Templeton Emerging Markets Equity’s Bassel Khatoun and Salah Shamma take stock of the investment landscape. They highlight some of the market developments in Saudi Arabia, Kuwait, Egypt and the United Arab Emirates (UAE) that have caught their attention.
Two Reasons US Equities May Keep Climbing into 2020
There’s an old adage called “climbing a wall of worry” that’s used to describe a situation where markets continue to climb in the face of uncertainties. Certainly there is no shortage of uncertainties today, yet US stocks have clawed their way to new all-time highs. Franklin Equity Group Portfolio Manager Grant Bowers recognizes there may be a few cracks emerging, but says there are still two main reasons to be optimistic about the outlook, and believes there is still room for US equities to run in 2020.
Non-Transparent, Active ETFs Get Regulatory Nod
The menu of types and styles of exchange-traded funds available to investors keeps growing. The Securities and Exchange Commission just approved four proposals for a new type of exchange traded fund: non-transparent, active ETFs
Corporate Governance in Emerging Markets: Harnessing Winds of Change
Emerging markets provide many potential investment opportunities, but corporate governance shortfalls can present challenges. Over the years, some countries have moved faster than others to plug their governance gaps. Franklin Templeton Emerging Markets Equity’s Chetan Sehgal and Andrew Ness outline what corporate governance is and how emerging markets are making improvements in this area.
Optimism Returns to Emerging Markets in October
A number of factors spurred improved investor sentiment in emerging markets over the past month, including an interest-rate cut from the US Federal Reserve. Franklin Templeton Emerging Markets Equity outlines the news and events shaping market moves during October, and the reasons why the team is optimistic about the coming year.
Navigating New Global Market Uncertainties
Global equity markets continued to face uncertainties during the third quarter of this year, but by and large, they remained resilient.
Emerging Markets Show a Quiet Resilience
As the world watches the US-China trade spat roll on, it is important to look beyond the headlines and examine the economic reality and progress within emerging markets, according to Franklin Templeton Emerging Markets Equity’s Andrew Ness. He explains why investors should pay attention to the economic evolution taking place in emerging-market economies.
Beyond Alignment: Contributing to the Sustainable Development Goals
As investors, both institutional and individual, look for ways to use their money in a more impactful way, the United Nations’ Sustainable Development Goals (SDGs) have emerged as a relatable tool. However, Raymond Jacobs and John Levy from Franklin Real Asset Advisors warn the SDGs are vulnerable to misuse, misrepresentation and dilution.
In the Know: Finding Value Among US Microcap Stocks
When many investors think of microcap stocks, they envision high growth stocks that are like rockets. They soar when times are good, and crash and burn when times are bad.
Data science has brought investors powerful new tools to help generate returns, so is there still need for a human touch? Franklin Templeton Fixed Income CIO Sonal Desai weighs in on the role of quantitative science within the active-passive investment debate.
Templeton Global Macro: An Update on our ESG Scores
This update contains a brief background on our ESG philosophy as well as an update on our methodology, notably including an improvement we made to adjust from overweighting S and G factors in previous iterations to an equal weighting of each of the E, S and G factors going forward.
Three Tenets for Investing in Innovation
With global economic growth experiencing a slowdown this year, some investors may be concerned about valuations for the innovative companies that have been popular during the past decade.
Brexit: Not the Beginning of the End, But the End of the Beginning?
Against the odds, Boris Johnson’s UK government appears to have agreed to a deal in principle with the European Union (EU) which could see the United Kingdom leave the EU on October 31 in an orderly way.
Monetary Easing Prevalent in Emerging Markets in the Third Quarter
The US-China trade conflict has remained at the forefront of investor concerns in recent months, with both governments imposing tariffs on each other’s goods. While continued tensions are likely to result in continued market volatility, Franklin Templeton Emerging Markets Equity nonetheless finds reasons to be positive about emerging markets, with a more dovish global central bank backdrop offering support.
India’s Surprise Tax Cut Comes at An Opportune Time
Amid slowing economic growth in India, the Modi government’s surprise corporate tax cuts have come at an opportune time, according to Franklin Templeton Emerging Markets Equity’s Sukumar Rajah. He explains why the fiscal adjustment could improve India’s competitiveness among its regional peers.
Staying Nimble Amid an Uncertain Outlook
Bouts of volatility hit markets across the globe in the third quarter of 2019 amid continued uncertainties about global growth and trade. Central banks took notice, with the US Federal Reserve easing interest rates for the first time in more than a decade and the European Central Bank also cutting rates and reintroducing quantitative easing.
Looking Past the Hang-Ups for Asia’s Smartphone Industry
Despite the US-China trade war, Franklin Templeton Emerging Markets Equity’s Sukumar Rajah doesn’t think the opportunity set for emerging markets is lost. He explains how a saturated smartphone market could create innovation opportunities in emerging market countries in Asia.
Real Assets Could Be the Alternative
Given the backdrop of a slowing global economy and shaky investor sentiment tied to trade tensions, Franklin Templeton Multi-Asset Solutions’ Ed Perks and Gene Podkaminer are calling for an active investment approach.
The Fed Calls Time for a Reality Check
The US Federal Reserve cut its benchmark short-term interest rate for the second time this year, but some observers were disappointed the Fed didn’t more strongly signal future easing moves.
August Ruled by Global Economic Slowdown and Trade Fears
Trade fears, social unrest in Hong Kong and Brexit uncertainties weighed on markets in August. Franklin Templeton Emerging Markets Equity expects continued volatility, but an interest-rate cut from the US central bank in September could help stabilize emerging market currencies.
Pinpointing Fixed Income Credit Risks
In this excerpt from the latest Franklin Templeton Thinks, Franklin Templeton Fixed Income Group examines how machine learning techniques can measure the risks of consumer and home loans—helping pinpoint credit risks they think are worth taking.
What We Think Could Drive European Markets in the Coming Months
As European investors and market practitioners return from their summer vacations and prepare for the final third of 2019, our Head of European Fixed Income David Zahn highlights the issues he thinks will drive markets in the coming months.
Changes to the Emerging Markets Club: China (A Shares), Argentina and Saudi Arabia
There have been some noteworthy recent changes in the composition of two broad emerging market indexes that have investors taking notice.
Three Reasons to Consider Dividend Growers
As global economic growth slows and US-China trade tensions drag on, Franklin Equity Group’s Nick Getaz and Matt Quinlan see signs that some investors may be turning their attention away from the high-growth stocks that have been popular during the recent US equity bull market.
US Market Volatility and Sleepless Summertime Nights
The summer of 2019 has given equity investors a lot of things to worry about. Yet, Franklin Equity Group’s Grant Bowers says the health of the US equity bull market shouldn’t be one of them—at least not now.
Yield Curve Hysteria
The inversion of the Treasury yield curve has recently gotten a lot of attention in the financial press as being a harbinger of economic malaise ahead. Our Fixed Income CIO Sonal Desai says these conclusions are misguided.
Adrift: Has Monetary Policy Become Unanchored?
In light of the Federal Reserve’s recent interest-rate cut, our Fixed Income CIO Sonal Desai takes a look at how US central bank thinking seems to have changed, and whether there’s a risk of having interest rates too close to zero.
Trade Tensions Flare: Where Do We Go from Here?
Market volatility has been on the rise as US-China trade tensions continue to flare and recent central bank activity has created more questions than answers. As such, many investors have been on edge.
Impact Investing in Practice: Social Infrastructure
To understand how impact management can be applied in practice, our Franklin Real Asset Advisors team, in collaboration with consulting firm Tideline, took an example from the real estate sector and considered the specific demands of social infrastructure.
The Federal Reserve: Dealer’s Choice
The US Federal Reserve cut its benchmark short-term interest rate for the first time in 11 years in what Chairman Jerome Powell called a “mid-cycle adjustment” to sustain the US economic expansion.
The Five Building Blocks of Effective Impact Management
No single, unified best practice has yet emerged for impact investing, and a proliferation of methodologies and metrics has introduced an element of confusion. Simply navigating through all the resources available to impact investors can be a challenge.
A Northern View: 10 Years into a Canadian Bull Market
While there has been a lot of focus among many investors on the length of the US economic expansion, there are other countries experiencing similarly long—or longer—expansions of their own.
Four Reasons Why Gold Prices Have Been Moving Higher
Investor sentiment toward gold turned bullish in June, pushing gold spot prices to six-year highs in US dollar terms in July. As a result, there is excitement in the industry that, if prices hold, third-quarter corporate earnings results for gold miners may indicate a return to strong cash generation.
An Introduction to Impact Investing
Interest in impact investing is growing within the asset management industry, but there is still some confusion about it. We view impact investing’s defining feature as the explicit intention to generate positive, measurable social and environmental outcomes alongside a financial return.
New UK Prime Minister Boris Johnson Faces Challenges at Home and Abroad
Boris Johnson, one of the most enthusiastic supporters of Brexit, is the United Kingdom’s new prime minister. David Zahn, Franklin Templeton’s Head of European Fixed Income, doubts Johnson will have much of a honeymoon period in the new role as he faces stiff challenges domestically and internationally, with global markets scouring his every move.
Food Security Through an ESG Lens
Consumers in emerging markets are demanding more meat. But with virulent animal diseases threatening some traditional sources of their meat proteins, they are having to look beyond their domestic and regional markets to sate the demand.
Brazil Takes Big Reform Step
Pension funding has been an issue in many parts of the world and has certainly been a hot topic in Brazil. President Jair Bolsonaro’s election ignited market optimism on promises to reform pensions to get Brazil’s fiscal house on a firmer footing. The probability of this being delivered has increased considerably after approval of a new pension reform bill in Brazil’s lower Congress. Franklin Templeton Emerging Markets Equity’s Gustavo Stenzel and Marcos Mundim weigh in on what the breakthrough means for the country, and for investors.
As the US economic cycle continues to age, many are starting to question when, and how, it will end. Our Head of Equities Stephen Dover says it's certainly wise for investors to prepare, but doesn't see reason to think a recession is on the immediate horizon.
As the US economic cycle continues to age, many are starting to question when—and how—it will end. Our Head of Equities Stephen Dover says it’s certainly wise for investors to prepare, but doesn’t see reason to think a recession is on the immediate horizon.
Health Care Sector Innovation: How Biopharma Scientists Save Lives Globally
In today’s world of disruptive innovations, biotechnology is entering the most transformative phase our health care analysts have seen in 25 years. Since mapping out the human genome in 2003, drugs using new treatment paradigms—like gene and cellular therapies—have jumped out of laboratories and into the marketplace to tackle humanity’s most vexing diseases.
Where Bricks Are Beating Clicks: Implications for Last-Mile Real Estate
Many observe the impacts of e-commerce growth as decimating commercial retail properties, leaving empty big-box warehouses and strip malls in its wake. While this may be true to a certain extent, it ignores the potential opportunity this new trend is creating in the industrial property sector.
A Strong June Pulled Emerging Markets Up in the Second Quarter
Trade issues continued to dominate headlines in June, with easing in US-China trade tensions providing a boost to emerging markets overall during the month. But Franklin Templeton Emerging Markets Equity cautions trade-related headwinds could persist. The team shares its latest emerging-market outlook and explains why the small-cap space looks attractive right now.
Where Bricks Are Beating Clicks: Implications for Last-Mile Real Estate
Many observe the impacts of e-commerce growth as decimating commercial retail properties, leaving empty big-box warehouses and strip malls in its wake. While this may be true to a certain extent, it ignores the potential opportunity this new trend is creating in the industrial property sector.
Understanding the Climate Change Challenges Facing Consumer Goods Companies
As an active investment manager with a firm commitment to integrating environmental, social and governance analysis into its investment processes, Franklin Templeton recognizes its responsibility to raise awareness of climate transition issues.
Looking Beyond the FAANGs For Fresh Technology Investment Opportunities
The technology sector has been on a volatile ride of late, driven in large part by the fortunes of some household names.
MENA Fixed Income: Four Things That Are Top of Mind
Accelerated demand for regional debt suggests a constructive remainder of 2019 for bonds in the Gulf Cooperation Council (GCC), according to Dino Kronfol, chief investment officer, Franklin Templeton Global Sukuk and MENA Fixed Income. He outlines four things that are at the top of his mind for GCC debt in the current economic climate. He also shares why he thinks the MENA region could provide fertile ground for fixed income investors searching for yield.
An Investor’s Perspective on the Proposed Taxonomy for Sustainable Finance
Can stakeholders (regulators, policymakers and market participants) deliver a sustainable finance framework that serves the end-client well?
What's Really Driving Oil Market Volatility?
Franklin Equity Group's Fred Fromm explains the global oil supply-demand dynamics responsible for the bouts of oil market volatility we've seen this year.
US Fed in Tough Spot as Market Clamors for Rate Cuts
The US Federal Reserve kept interest rates steady at its June meeting; it emphasized its data-driven approach to policy decisions but noted it believes the case for lower interest rates to be strengthening.
China's Sci-Tech Board: Hope or Hype?
China will be launching a Nasdaq-style stock market for technology and research-driven companies to list and raise capital. While it has some detractors, Franklin Templeton Emerging Markets Equity believes this upcoming board is of strategic importance to China.
Trade War Concerns Rattle Emerging Markets in May
Trade tensions caused investors to back away from emerging markets in May, but there are many reasons to be optimistic about the asset class and the earnings outlook ahead.
The “Halo Effect” of Saudi Arabia’s Emerging Markets Arrival
Saudi Arabia’s inclusion in the MSCI Emerging Market Index marks a significant milestone for the MENA region.
Should Markets Heed Recession Warnings?
Amid a renewed US-China trade spat and additional tariff tensions between the United States and Mexico, investor concerns about a possible recession have heightened.
Trade War: The Second Front
After ratcheting up trade tensions with China, the Trump administration has threatened tariffs on Mexico over illegal US border crossings.
The EU: Singing from 28 Hymn Sheets
What’s the investment lesson in Europe’s recent parliamentary elections? Our Fixed Income CIO Sonal Desai says it’s differentiation. Read more of what’s on her mind about this topic.
Municipal Bonds: When Full Faith and Credit Falls Flat
Once upon a time, US municipal bonds were generally considered less risky than corporate bonds. Backed by the full faith and credit of state governments, investors had confidence they would receive their principal plus interest without fail. Times have changed.
FOMO? Investors Fear Missing Out as Companies Stay Private for Longer
Many companies are staying private for longer before deciding to go public—if they do so at all. But what does that mean for investors?
European Parliamentary Elections: A Barometer of European Thinking?
European parliamentary elections don’t typically generate international headlines, but with Brexit still unsettled, this time they are front and center.
May Confirms Departure Date, but What Could It Mean for Investors?
UK Prime Minister Theresa May has finally confirmed the date she intends to resign, after enduring growing criticism from members of her own party. According to David Zahn, our Head of European Fixed Income, this development significantly increases the chances of the United Kingdom crashing out of the European Union (EU) without a deal. He expects a likely negative market response, but argues there may be opportunities for shrewd active managers.
May Confirms Departure Date, but What Could It Mean for Investors?
UK Prime Minister Theresa May has finally confirmed the date she intends to resign as UK Prime Minister, after enduring growing criticism from members of her own party.
Financial Wellness: Are College Costs Impacting Your Retirement?
Recent statistics on student loan debt have found some rather alarming trends. Not only are many parents prioritizing the financing of college for their children over their own retirement, but some are still paying off their own student debt—even into their 60s.
US/China Trade Tensions Are Testing Investors’ Nerves
The war of words between the Trump administration and China threatens to break out into a full-scale trade war.
Fundamentals Drive Emerging Market Performances in April
Franklin Templeton’s Emerging Markets Equity team walks through events moving emerging markets in April and discusses the three things the team is thinking about today. The team believes the current market environment provides an attractive entry point for investors, particularly in the small-cap stock space.
Many Americans Unprepared for the Cost of Health Care in Retirement
The rising cost of health care has been a political hot button issue for years, and Franklin Templeton’s 2019 “Retirement Income Strategies and Expectations (RISE)” survey revealed it remains a top concern today.
Searching for Value When Growth Is King
It’s been a tough road for value investors during the past decade or so, even leading some pundits to declare the investing style is dead.
European Elections: Big Changes, or Business as Usual?
Many observers are predicting that European elections later this month will usher a wave of populist representatives into the European Parliament.
Eurozone Debt Disputes Make an Unhappy Union
Once upon a time, bonds backed by a government’s full faith and credit pledge were generally considered less risky than corporate bonds. Times have changed. In today’s political climate, not all governments inspire us with the same confidence.
Is Your Portfolio Prepared for a Potential Wildfire?
In the decade since the global financial crisis, many investors have either actively steered—or ended up with—a large portion of their portfolios in investments tied to economic growth, namely stocks.
The Answer Is Blowing in Brazil's Wind
Renewable energy production in Latin America has grown dramatically over the last decade. The use of green technology like wind turbines and solar arrays continues to expand, as countries like Brazil seek to improve energy security and lower carbon emissions.
Don’t Let Home Country Bias Limit Your Investment Potential
It’s easy for investors to fall into what is known as “home country bias,” looking only within their own country’s borders for opportunities. Investors may be missing the boat if they don’t expand their opportunity set beyond their shores.
Changing Dynamics and New Opportunities in Municipal Bonds
Many investors flock to municipal bonds because of potential tax advantages. While this year’s taxes are probably already done and dusted, Franklin Templeton’s municipal bond team felt it was an appropriate time to revisit the opportunities and risks that recent US tax reform poses for the space.
Still No Roadmap to a Brexit Resolution as EU Offers Another Extension
Brexit may have been delayed again. The European Union has offered to allow the United Kingdom more time to decide how it wants to leave. While the measure may prevent a no-deal Brexit in the short term, our Head of European Fixed Income David Zahn thinks it may simply be saving up problems for the future.
A Long Brexit Delay Seems Likely, but to What End?
Brexit negotiations are once again going to the wire. With no resolution in place and the clock ticking down, Sandy Nairn, chairman of Templeton Global Equity Group and CEO of Edinburgh Partners, looks at the possible outcomes.
Trade Wars—The Dog That Didn’t Bark
The prospect of a “trade war” between the United States and China has caused some investor trepidation over the past year. But are the fears of economic fallout from this “war” warranted? And, was there ever really a war at all?
China’s Re-Balancing Act
In the face of slowing economic growth, the Chinese authorities appear ready to act. Franklin Templeton Emerging Markets Equity’s Sukumar Rajah and Jason Zhu explain how measures announced at the 13th National People’s Congress are designed to shore up China’s growth prospects.
Is the US Yield Curve Signaling a US Recession?
There has been a lot of talk the past few years about the flattening of the US yield curve—which is a graphical representation of the spread between short- and long-term interest-rate instruments. More recently, some market commentators have focused on the inversion of one part of the curve—and what it means.
Steady Fed Maintains Dovish Stance
The US Federal Reserve’s decision to keep interest rates steady at its March meeting came as little surprise, but its updated “dot plot” projections were interpreted by markets as sending a decidedly more dovish signal than expected.
Can the EU’s Extension Offer Really Break the Brexit Deadlock?
After a nail-biting few hours, European Union leaders have agreed to the UK government’s request to delay Brexit, albeit the extension is less than Theresa May had requested. But our Head of European Fixed Income David Zahn believes the decision does little more than reset the clock and he warns there is still a strong chance that the United Kingdom could still crash out without a deal.
On My Mind: Modern Magical Thinking
In economic (and political) circles, “Modern Monetary Theory” has gotten some buzz of late. What does it mean—and does it have any merit? Franklin Templeton Fixed Income Chief Investment Officer Sonal Desai thinks it’s not only potentially dangerous, but offers intellectual fuel for populism.
MPs Say No to No Deal, but an Accidental Hard Brexit Remains a Possibility
Some commentators have described March 13 as the most important day in the Brexit saga since the June 2016 referendum. UK members of parliament have voted to reject a situation in which the United Kingdom crashes out of the European Union without a deal.
This Isn’t the Way Stock Market Cycles Typically End
European equities are the great unloved asset class. But Dylan Ball, head of European Equity Strategies, Templeton Global Equity Group, thinks that status means there should be some opportunities to be found for long-term investors.
Emerging Markets Record Mixed Performances in February
Emerging market equities saw mixed performances in February, with stocks in Asia faring better than stocks in Latin America and emerging Europe, which underperformed.
Shifting Climate, Shifting Opportunities
Climate change, like any type of disruption, has disparate impacts on people, places and things. It can also have disparate impacts on corporations and investments.
Volatile Markets: Are High-Frequency Traders to Blame?
Our Head of Equities, Stephen Dover, takes a look at what’s driving growth in high-frequency trading. He also explains why the algorithms behind the trading can lead to bouts of increased market volatility that may create opportunities for long-term investors.
Three Technology Titans Reshaping Retail
Powerful retailing disruptors are reshaping expectations about shopping and shipping by digitizing retail markets across the globe. New conveniences such as ordering groceries with a simple voice command are upending the old-world order.
Emerging Markets Race Ahead in January
Emerging market equities were off to a strong start overall in 2019, rebounding from a 2018 downturn.
On My Mind: The Fed Will Hike Again—Because It Can
While the financial markets seem to be betting on a very extended pause in the US Federal Reserve’s multiyear tightening cycle, Franklin Templeton Fixed Income Group Chief Investment Officer Sonal Desai has another idea. Here, she makes the case that interest-rate hikes may still be on the table this year.
A Measured but Constructive Market View
The market environment for value investors over the past few years has been less than ideal, but that doesn’t mean there aren’t opportunities to be had.
The Real Risk in Today's Global Markets
While some observers might worry that the current global economic cycle is ending, Templeton Global Macro CIO Michael Hasenstab characterizes the slowing growth we are experiencing as a cyclical slowdown, not the end of the cycle. He is more concerned with the political vulnerabilities he's seeing in the global economy today, and says the world's increasing fragmentation due to populist policies is a major concern.
Three Reasons to Embrace Emerging Market Corporate Credit
Robert Nelson, a portfolio manager with Franklin Templeton Fixed Income Group, believes emerging market corporate debt presents a compelling but under-appreciated investment story. Here he sets out three reasons why investors might consider an allocation to the asset class.
Surveying the Investment World through an ESG Lens: A Snapshot of Key Topics from the US
Environmental, social and governance (ESG) topics have never been more prominent in investors’ minds than they are today. But there’s considerable variation among investment managers about how ESG is considered or integrated.
The Impact of US Policy on Emerging Markets: Three Investor Misconceptions
As investors continue to grapple with market jitters brought on by months of US-China trade tensions and other market uncertainties, Franklin Templeton Emerging Markets Equity’s Chetan Sehgal explains why the recent volatility could present opportunities in the medium to long term.
US Government Shutdown Paused for Now: Assessing the Economic Impact
The longest-ever US government shutdown has finally ended—at least temporarily—while negotiations continue over funding of a US-Mexico border wall. While the government will be reopened at least until February 15, the economic implications of the shutdown and the potential for more disruption ahead has become a source of concern to many global investors.
US Government Shutdown: Assessing the Impact
The longest-ever US government shutdown has finally ended, at least temporarily, while negotiations continue over funding of a US-Mexico border wall. While the government will be reopened at least until February 15, the economic implications of the shutdown and the potential for more disruption ahead has become a source of concern to many global investors.
What Really Stood Out at the 2019 US Consumer Electronics Show
When we attend the US Consumer Electronics Show (CES) each year in Las Vegas, our goal is to avoid the marketing hype surrounding certain products. Instead, we look for the latest technologies we think are really going to make a difference, some of which may not generate media buzz.
Putting Equity-Market Turbulence into Context
Many equity investors were no doubt happy to put 2018 in the rear-view mirror. The heightened volatility in the fourth quarter of the year in particular took many investors by surprise—but what is often missing in the discussions about the volatility is that it didn’t stem from a broad deterioration in economic fundamentals.
Why We Think Most “Brexit Panaceas” Are Ill-Thought-Through or Unviable
As expected, Theresa May and her government survived the no-confidence vote called by the opposition Labour Party after the UK Parliament overwhelmingly rejected her withdrawal deal. Now UK political attention must turn back to the real job at hand—navigating the United Kingdom’s exit from the European Union.
Emerging Markets Outpace Developed Markets in the Final Quarter of 2018
Numerous uncertainties weighed on investor sentiment in 2018 and led to a down year for emerging markets overall, although the fourth quarter saw some outperformance versus developed markets.
Mapping the Influence of AI and Machine Learning
The evolution of artificial intelligence (AI) has rarely been far from the headlines in recent years. Its influence now reaches into nearly every sector and geography and holds economic and political ramifications that many experts say are on par with the start of the Industrial Revolution in the 18th Century.
Emerging Markets Equity Investing: Never Waste a Crisis
Emerging-market equity investors are likely happy to bid goodbye to 2018—a year filled with challenges and uncertainties.
Is it Time for Small-Cap Stocks Overseas to Shine?
As global markets increasingly ponder how long US economic growth can continue, Franklin Equity Group’s Ed Lugo says he’s looking for potential investment opportunities outside the United States. He explains why he sees opportunities in Europe and Asia, despite concerns about Brexit negotiations and a slowing Chinese economy.
What Will a Government Shutdown Mean for Investors?
US members of Congress are finding themselves at a stand-off over the creation of a border wall between the United States and Mexico. President Trump’s threats to shut down the government if the bill is not passed raise questions and uncertainty that will contribute to increased political risks for investors to consider. Stephen Dover, Head of Equities for Franklin Templeton Investments, shares his perspective about the potential impacts.
The Impact of US Policy on Emerging Markets—Dollar Concerns “Overdone”
Continued US dollar strength has focused attention on weaker commodity prices and dented investor enthusiasm for emerging markets in recent months—stoking fears that the current climate could lead to a repeat of the 1997-1998 Asian Financial Crisis.
Risk On, Risk Off, or Risk Uncertain?
While big market swings can be unsettling to many investors, there are a number of alternative investment strategies that aim to turn volatility into opportunity, according to K2 Advisors’ Brooks Ritchey and Robert Christian.
Does a Brexit Resolution Require a New Referendum or a General Election?
Political infighting abounds in the United Kingdom as the clock ticks relentlessly towards the March 29 Brexit date. Amid entrenched positions on all sides, Sandy Nairn, Chairman of Templeton Global Equity Group and CEO of Edinburgh Partners, argues that only a fresh referendum or a general election can break the Brexit deadlock and examines some of the implications for investors.
Distortion, Divergence and Diversification: 2019 Global Investment Outlook
Our senior investment leaders see plenty of reasons to be optimistic about the year ahead, but recognize investment opportunities may be more divergent.
Changes in Technology, Regulation and Accessibility Drive Rise in Use of Collective Investment Trust
Collective Investment Trusts (CITs) have been gaining momentum in the retirement space, and for good reason. Jason Colarossi, vice president, national retirement strategist, of Franklin Templeton’s Defined Contribution Division, outlines what CITs are and how they have evolved.
The Case for Municipal Bonds in a Rising-Rate Environment
Municipal bond yields moved higher in 2018 and seem likely to continue moving up in 2019 if market expectations for further interest-rate increases play out.
An Integrated Approach to Managing ESG Risks and Opportunities
Information, data and research are the fuel for investment decisions. Over the years, as new information has emerged and evolved, investors have found innovative means to harness new insights to help inform their decisions.
Are We Nearly There Yet?: Revisiting the Politics and Processes of Brexit
In the summer, Sandy Nairn, Chairman of Templeton Global Equity Group and CEO of Edinburgh Partners, authored a paper entitled The Politics and Processes of Brexit.
Why Some Investors Are Looking Again at Gold
For some investors, increasing exposure to gold has been a knee-jerk reaction to bouts of heightened financial market volatility. Franklin Equity Group's Steve Land says there's more to gold than that. And he explains why he's positive about both the prospects for gold and for gold equities.
The Glistening Project: Why Some Investors Are Looking Again at Gold
For some investors, increasing exposure to gold has been a knee-jerk reaction to bouts of heightened financial market volatility. Franklin Equity Group’s Steve Land says there’s more to gold than that. And he explains why he’s positive about both the prospects for gold and for gold equities.
The Gift that Keeps on Giving
The holiday season is approaching, and with it, the busiest time of the year for shoppers as they search for the perfect gifts for their loved ones. But instead of purchasing the latest toy or electronic gadget for your children or grandchildren, what about giving them the gift of a more secure future?
October Market Recap and Outlook: A Sea of Opportunities
Emerging markets continued to struggle in October amid an environment of heightened equity-market volatility globally. Manraj Sekhon, CIO of Franklin Templeton Emerging Markets Equity, and Chetan Sehgal, senior managing director and director of portfolio management, believe the pullback presents long-term investors with opportunities amid what they dub an overreaction. They present the team’s overview of the emerging-markets universe in October.
Theresa May’s Brexit Steeplechase Has Only Just Begun: an Investor’s Perspective
UK Prime Minister Theresa May has cleared the first hurdle in her bid to secure a soft Brexit. Her Cabinet has backed the withdrawal deal UK and European Union negotiators have agreed to. But David Zahn, Franklin Templeton’s head of European Fixed Income, warns her most difficult challenge lies ahead.
Finding Value among Stretched US Valuations, Market Dislocations
In recent years, US market strength has lifted markets globally, despite recent bouts of market volatility. According to Templeton Global Equity Group, that US market strength has led to a widening valuation gap between US and global equities.
Assessing a Divided Congress and Market Fundamentals
Tuesday’s US midterm elections shifted US Congress to split control. Yet, Franklin Templeton Multi-Asset Solutions CIO Ed Perks says this expected alteration in the balance of power is unlikely to change his US economic outlook or lead to major changes in US policy. He also explains why he looks at multiple fundamental factors when assessing markets, rather than political outcomes alone.
US Equity Market: Are Things as Good as They’ll Get?
The US equity market’s ascent paused in October as investors digested rising rates, slowing global growth and the persistent question: “Are things as good as they’ll get?”
Change is Coming to the Retirement Landscape
In recent months, there has been heightened activity in Washington DC in the area of retirement policy, with plans and proposals that could meaningfully alter the landscape. Drew Carrington, head of Institutional Defined Contribution at Franklin Templeton Investments, and Michael Doshier, vice president, Retirement Marketing, discuss the latest legislative developments and ideas.
The Race to Harness AI Technology in Asia
Artificial intelligence (AI) and automation present enormous investment opportunities, some in ways we don’t even know yet. As the world adapts to technological advances, Franklin Templeton Emerging Markets Equity’s Sukumar Rajah and Eric Mok think some promising developments in Asia could dictate the pace of change in the burgeoning AI market.
Renewable Energy Gaining Steam
Renewable energy has been gaining steam for many reasons, as have the investment opportunities in the space. Ketul Sakhpara, portfolio manager and research analyst, Franklin Real Asset Advisors, outlines the three main drivers of interest, and where his team sees potential.
Fourth Quarter Hedge-Fund Strategy Outlook: K2 Advisors
In their fourth-quarter (Q4) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams take a deeper look at alpha, and why they feel it’s misunderstood. They believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.
A Few Words on Equity-Market Volatility
October has lived up to its reputation as a volatile month as concerns about rising US interest rates, slowing growth in China and upcoming US midterm elections have spooked many investors. Franklin Equity Group offers a few words on the recent turmoil, why volatility can unlock compelling opportunities and why the investment team still sees a compelling case for technology companies.
A Global Macro Perspective: Populism, Trade and Emerging-Market Volatility
Templeton Global Macro Chief Investment Officer Dr. Michael Hasenstab and Vice President and Deputy Director of Research, Dr. Calvin Ho, discuss emerging-market turbulence, the persistent concerns around trade policy and divergent growth trends in the developed world.
The US Yield Curve: Should We Fear Inversion?
There has been a lot of talk this year about the flattening of the US yield curve—which is a graphical representation of the spread between short- and long-term interest-rate instruments.
Social Security Giveth and Medicare Taketh Away
Retirees got some good news from the US Social Security Administration, as it recently announced a 2.8% bump in benefits in 2019, the largest increase in seven years. Unfortunately, the good news also came with some bad news—higher Medicare premiums that could offset those gains.
Global Economic Perspective: October
The current widespread optimism about the US economy is largely justified, in our view, by its strong fundamentals, particularly the positive backdrop for consumers. Despite the economy’s robust growth, we do not view the recent rise in US Treasury yields as heralding the start of a major selloff across bond markets.
Hasenstab: Focus on Fundamentals in US, Emerging Markets
Templeton Global Macro CIO Michael Hasenstab shares his thoughts on why he thinks US Treasury yields have moved higher. He also gives his take on recent weakness in emerging markets.
A View from Canada on the New USMCA
After more than a year of tense talks, Canada, Mexico and the United States have replaced the North American Free Trade Agreement (NAFTA).
Innovation Stretches Beyond Labels
Some of the market’s most innovative companies now call a new sector home, as part of a revamp of the Global Industry Classification Standard used by index providers to classify stocks.
As Public Attitudes Toward the Environment Change, So Should the Investment Approach
In the 16 years since the Principles for Responsible Investment (PRI) were first unveiled there’s been a sea change in awareness and concern for the environment among the general public. But that hasn’t necessarily been reflected in the asset management world.
Fed Full Steam Ahead
The US Federal Reserve (Fed) raised its benchmark short-term interest rate for the third time this year, which was no surprise to most market participants. Chris Molumphy, chief investment officer, Franklin Templeton Fixed Income Group, offers his take on the Fed’s “normalization” path in light of what he sees as an overall positive US economic backdrop.
Moving Up in Credit Quality for Better Durability
Some investment-grade bonds are riskier than their ratings imply, while high-yield bonds have seen some positive tailwinds. Meanwhile, a large number of bank loan agreements now favor borrowers over lenders. Franklin Templeton Fixed Income Group's Glenn Voyles, Marc Kremer, Matt Fey, Brian French and Reema Agarwal take a look at these areas of credit landscape today. They explain how credit research and long-term orientation helps them discern cash-flow durability in the companies they analyze and outline how they negotiate for better terms in credit agreements
Global Investment Outlook: How Much Further Can Global Growth Fly?
A number of market headwinds—including trade tensions, rising interest rates and a general fear the long-running US economic expansion may be facing fatigue—have cast a shadow over the markets in the first half of the year.
Then and Now: Mortgage-Backed Securities Post-Financial Crisis
A little over 10 years ago, few people had heard of mortgage-backed securities (MBS). Yet that changed when MBS brought the global financial system to its knees. Today, they’re still a pivotal part of the system, with the US Federal Reserve (Fed) the largest holder.
Views on Emerging-Markets Equity and Select EM Countries
In light of the Turkish lira and Argentine peso currency drops, fears of emerging-market (EM) contagion appear to be on the rise, and various EM currencies have been under pressure. Here, Franklin Templeton Emerging Markets Equity provides perspective on some of the impacted countries in the headlines recently: Argentina, Turkey, South Africa and Indonesia.
Riding the US Liquefied Natural Gas Wave
The United States is rapidly expanding its ability to export liquefied natural gas (LNG), as more countries look to embrace cleaner energy. Franklin Equity Group’s Matt Adams gives his outlook for US LNG and the possible investment implications.
Three Developments in Europe You May Have Missed over the Summer-and One You Didn't
The months of July and August are traditionally a little quieter for markets in Europe as participants take a summer break. But things don't stop completely. As the wheels get back up to speed, David Zahn, Franklin Templeton's Head of European Fixed Income, considers a few developments in Europe over the summer months that might have slipped under the radar.
Why We Think the US Equity Bull Market Could Keep Running into 2019
Now that the US equity bull market has officially hit the history books as the longest on record, some observers are concerned it could soon stumble. Grant Bowers, vice president and portfolio manager, Franklin Equity Group, outlines why he thinks it could keep running into 2019.
Trade Turmoil Doesn’t Derail Our Outlook for India
Trade tensions have spooked investors in recent months, including those in India’s stock market. Franklin Templeton Emerging Markets Equity’s Sukumar Rajah weighs in on the positive economic fundamentals he and the team see, and why they think India’s equity market should be able to weather recent challenges.
July Recap and Outlook: Frontier Markets Lead Rebound
July marked the first month of the calendar year where emerging markets posted positive performance overall, with frontier markets leading the way.
US Equity Bull Market Goes the Distance
The US stock market, as measured by the S&P 500 Index, just reached a historic milestone.
Global Economic Perspective: August
The US economy has continued to perform well on many fronts, with positive readings for growth, employment and inflation. In terms of growth, the stimulus effect from tax cuts was clearly visible in second-quarter 2018 data, and could be maintained for at least another quarter, in our view.
Is it Time for Value Stocks to Shine?
Since 2008, US growth stocks (particularly in faster-growing sectors such as technology) have tended to perform better than US value stocks, as the chart below shows.
Of Currencies, Trade and Other Clouds
Emerging markets have struggled in the first half of this year amid a storm of uncertainties. Franklin Templeton Emerging Markets Equity’s Chetan Sehgal examines issues that have acted as clouds on the asset class—including a stronger US dollar and trade skirmishes...
Speeding Toward Brexit, Some Off-Ramps Emerge: A Dialogue with Lord Kerr
The Brexit clock is ticking as the United Kingdom’s departure from the European Union (EU) is set to take place in March 2019. But is the UK ready to leave? And is there still a chance it won’t?
Unlocking Romania’s Potential
For nearly two years, frontier market Romania has been on index provider FTSE’s watch list for a possible upgrade to emerging-market status. However, some issues remain over the market’s attractiveness for foreign investors.
Cutting through the Noise: Trump, Trade and Twitter
In 2018, President Trump’s tweets on international trade have led to bouts of market volatility and concerns of a global economic slowdown. Against this backdrop, Franklin Templeton Multi-Asset Solutions’ Matthias Hoppe explains why he thinks economic fundamentals will determine the fate of the global economy more than Trump’s words will.
Revisiting Corporate Credit amid Market Volatility
In 2018, rising inflation, higher US interest rates and escalating trade tensions have led to concerns about global economic growth and bouts of equity-market volatility.
Can You Retire Your Retirement Risk?
Many (if not most) people think about retirement in terms of saving for the day they leave the workforce and won’t be collecting a paycheck any longer. The prospect of outliving one’s savings is therefore a top source of stress, along with being able to pay escalating health care costs.
Brexit: Are Markets Underestimating the Chances of the UK Not Leaving?
With nine months to go until the date on which the United Kingdom officially is due to leave the European Union (EU), much remains unclear both about the process and the outcome. The recent resignations of two prominent Brexiteers from the UK government has added further uncertainty to the outlook.
Global Economic Perspective: July
We think the US economy remains in good shape, with the rate of growth potentially picking up, a labor market that is tight but attracting new workers, and inflation that still seems relatively subdued. Boosted by tax cuts and spending increases, these favorable conditions could continue for some time.
Perspectives on Disruption
As our analysts and researchers travel the world surveying businesses, they hear a lot about disruption—the ability of new often-technology-backed companies to disrupt the status quo.
Disrupted Retirement: Is the US Facing a Crisis?
On our latest “Talking Markets” podcast, we listen in on a panel of experts discussing the potential US retirement crisis and the fear factors surrounding retirement disruption.
Convertible Securities: a Versatile Asset Class
Rising interest rates and volatile markets can create headwinds for all types of investors. Franklin Equity Group’s Alan Muschott makes a case for convertible securities, a hybrid asset class that he thinks can adapt to various market conditions.
Michael Hasenstab: An Update on our Global Markets Resilience Scores
Templeton Global Macro makes a compelling case that finding attractive opportunities in emerging markets lies in distinguishing the more resilient countries from the rest.
The Electrifying Outlook for Metals Demand
A steady roll-out of wireless products, such as power tools, vacuums, phones and computers over the past decade has driven increased demand for the metals that go into lithium batteries.
Digging into the Roots of US Trade Tensions
Talk of a “trade war” between the United States and several of its key trading partners continues to intensify. China has borne the brunt of the US tariffs targeting a wide range of goods, and has retaliated with threatened reprisals of its own, creating a tit-for-tat situation between the world’s two largest economies.
The Urge to Merge: Possible Implications from the AT&T-Time Warner Ruling
A recent US court ruling green-lighting the merger between AT&T and Time Warner marked an historic event that some say could open the door to more merger-and-acquisition (M&A) activity ahead. Sara Araghi, CFA, vice president, research analyst, Franklin Equity Group, and Marc Kremer, CFA, research analyst, Franklin Templeton Fixed Income Group, discuss some of the possible implications.
A New Development in Saudi Arabia’s Reform Story as MSCI Delivers Upgrade
Index provider MSCI’s decision to include Saudi Arabia in its emerging-markets index will likely transform the Kingdom’s equity market, and potentially those across the Middle East and North Africa (MENA) region, according to Bassel Khatoun and Salah Shamma, Franklin Templeton Emerging Markets Equity.
Social Security: It’s Healthier Than You Might Think!
Each year, Social Security’s Trustees report to Congress on the financial status of the program. This typically generates a number of anxiety-provoking media headlines about if/when it will run out of money. Gail Buckner, CFP, our personal retirement and financial planning strategist, takes a look at the facts. She says Social Security is actually in pretty good shape overall.
ECB Meeting: Fresh Clarity, But Let’s Not Get Ahead of Ourselves
The European Central Bank’s June meeting has offered some long-hoped-for clarity on the future direction of monetary policy in the eurozone. However, it hasn’t provided all the answers, and much remains open to interpretation. David Zahn, Franklin Templeton’s head of European Fixed Income, considers what might happen next and explains why he’s still not expecting a eurozone interest-rate hike before 2020.
Fed Gives US Interest Rates Another Bump in June
The US Federal Reserve continued its tightening path at its June policy meeting, raising its benchmark interest rate for the second time this year and seventh time since December 2015. Chris Molumphy, chief investment officer, Franklin Templeton Fixed Income Group, offers us a snapshot of the US monetary policy landscape in the wake of the meeting.
Three Things to Think about When It Comes to Trade
As the Trump administration continues to threaten tariffs targeting a variety of imported goods, from electronics to washing machines to automobiles, many market commentators have suggested the US-led trade skirmishes could turn into a trade war.
CEO View: What’s Changed 10 Years After the Global Financial Crisis?
At Franklin Templeton’s recent Global Investor Forum in New York, our CEO Greg Johnson participated in a panel discussion with three other CEOs in the financial services industry: James Gorman of Morgan Stanley; Jay Hooley of State Street and Barry Stowe of Jackson National Life.
In the Know: A Q&A on the Latest DOL Fiduciary Rule & SEC Proposal Developments
To say activity in Washington is being closely followed would be an understatement, with the consensus view that the Department of Labor’s Fiduciary Rule is all but officially vacated, and a recent proposal from the Securities and Exchange Commission (SEC) is in the middle of a 90-day comment period.
ECB Preview: Will Recent Italian Developments Influence Europe’s Tapering Timeline?
The future of the European Central Bank’s three-year-old quantitative easing program lies in the balance. Will the bank’s governing council use its scheduled June meeting to extend the program or confirm that asset purchases will end in September? David Zahn, Franklin Templeton’s head of European Fixed Income, believes recent European economic data and political developments in Italy point towards an extension. And he argues that means eurozone interest-rate hikes are unlikely before 2020.
Survey Highlights Women’s Retirement Insecurities
There has been heightened discussion recently about women’s inequality in many areas of society—including financial security. Gail Buckner, CFP, our personal retirement and financial planning strategist, explores the gender pay gap and how it has contributed to a poorer post-working life for many older women.
Oil Prices Hit Four-Year High, but Will the Surge Continue?
For the first time in a long while, geopolitics has been driving oil prices higher in an already tight market. With oil prices recently hitting a four-year high, gasoline prices have been climbing too, and analysts are carefully watching developments including the US withdrawal from the 2015 nuclear pact with Iran and re-imposition of economic sanctions on the country.
Tackling Student Debt and College Savings Plan Myths
The cost of a college education continues to rise, and along with it, student debt. Roger Michaud, senior vice president and director of college savings for the Franklin Templeton 529 College Savings Plan, and Mike O’Brien, director, Program Marketing, Global Client Marketing, look at how mounting student debt could have a long-term impact on one’s future.
Global Economic Perspective: May
In this month's Global Economic Perspective, our Fixed Income Group opines on rising energy prices, US Treasury yields, emerging-market currency pressures and global economic growth.
An Unconventional New Government in Italy
Two months after the Italian election, the country is on the verge of a new government led by the right-wing La Lega and left-wing Five Star movement. While markets take some time to digest the full implications of this unusual tie-up, David Zahn, Franklin Templeton’s head of European Fixed Income, offers his analysis of the political situation.
Is It Time For Value Investing to Return to the Limelight?
In recent years, value investing has played second fiddle to growth investing. But now could the stage be set for its return to the limelight? Franklin Mutual Series CEO Peter Langerman weighs in with his thoughts and explains why he is optimistic.
Will 2018 Be a Record Year for US Dividend Increases?
Some investment leaders from Franklin Equity Group explain why US tax reform and sectoral trends could lead more companies in select industries to raise dividends this year.
Talking Trade Tensions, Inflation and Volatility
Global growth has been accelerating, but there are a few potential headwinds that could cause it to stall. Three of our senior investment leaders—Ed Perks, Chris Molumphy and Stephen Dover—recently participated in a panel discussion on the potential impact of trade tensions, inflation and other issues on their radar.
Will the Roar of Market Tensions Tame Global Growth?
The first quarter of 2018 started out like a lamb but went out like a lion as long-dormant volatility began to roar. Issues like inflation fears, trade tensions and geopolitical risks contributed to market turbulence, leaving many investors wondering whether these issues will put a damper on global growth—and end the US market’s nine-year bull run.
Australia: Caught in the Middle of US-China Trade Tensions?
As US-China trade tensions continue to make headlines, some investors may not realize the fallout will affect many other economies, one being Australia.
Second Quarter Hedge-Fund Strategy Outlook: K2 Advisors
In their second-quarter (Q2) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams share their views on why investors should not fear the return of market volatility—and why it may unlock opportunities for active managers. We believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.
Health Savings Accounts: The Intersection of Retirement and Health Care
The increasing costs of health insurance borne by employees and employers alike has spawned a variety of plans and strategies to help manage the expenses. Among these are health savings accounts (HSAs), which first came onto the scene in 2003.
Will 2018 be a Banner Year for US Bank Stocks?
Franklin Equity Group Vice President and Portfolio Manager Matt Quinlan explains why he thinks US banks could benefit from a more favorable economic and regulatory environment. Given this healthy backdrop, he believes select large-cap bank stocks may increase dividends and stock buybacks in the next two years.
Who Said the Rules of the Game Could Change Because LIBOR’s Going Away?
There’s been a lot of discussion in the fixed income world about the end of the London Interbank Offered Rate (LIBOR) and what might replace it. But what hasn’t been as widely discussed is an important consequence for investors in this space: changes to LIBOR language in new-issue and amended credit agreements—particularly how these changes are implemented.
Why Tech-Sector Volatility Doesn’t Worry Us
While a few companies in the US technology space have been in the hot seat lately, Jonathan Curtis, vice president and research analyst with Franklin Equity Group, is largely unfazed. He said temporary “blips” affecting certain stocks are par for the course as consumers get used to new technologies—and how they impact our lives.
Symmetry Policy: How to Adapt to a More Volatile Market Environment
It’s easy to understand why the return of equity market volatility in the first quarter of 2018 caused some consternation for investors.
How Safe Is NAFTA?
With US-led trade skirmishes opening up on multiple fronts, it’s natural to wonder if the North American Free Trade Agreement (NAFTA) is in jeopardy.
Implications of DOL Fiduciary Rule Decisions and RESA Legislation
Some new developments in Washington and recent court rulings have implications for those saving and investing for retirement. Drew Carrington, head of Institutional Defined Contribution at Franklin Templeton Investments, along with Michael Doshier, head of retirement marketing, examine the status of the Retirement Enhancement and Savings Act (RESA) and what it might mean for both plan sponsors and participants.
Why There’s Never Been a Better Time to Invest in Innovation
Franklin DynaTech Fund is celebrating its 50th anniversary this year. To mark the occasion, we caught up with Franklin Equity Group Vice President Matt Moberg, portfolio manager of the fund. He explains why he thinks we are in the middle of a period of unprecedented innovation where five technology-driven themes are starting to disrupt various industries.
Artificial Intelligence: Real Influence
Having our global headquarters in the midst of California’s Silicon Valley gives Franklin Templeton a particular insight into the development of the technology sector. And often, new technologies can influence more than just a single industry or sector. We believe investors should consider potential market impacts although how these technologies will play out remains to be seen.
DOL Fiduciary Rule Still in Limbo After Latest Court Ruling
The US Department of Labor’s (DOL) Fiduciary Rule has been the subject of much debate, and still remains largely in limbo as it works its way through the court system. The rule, which expands the scope of persons deemed to be a fiduciary, was to go into effect in January 2018, but full implementation was delayed.
Fed Remains in Tightening Mode in March
The US Federal Reserve remained in tightening mode at its March monetary policy meeting, raising its benchmark interest rate for the sixth time since December 2015.
Banking Sector Under the Microscope
The US financial sector faced heavy scrutiny in the wake of the global financial crisis of 2008-2009, but the end result was that banks emerged in better shape overall, according to Shawn Lyons, vice president and portfolio manager, Franklin Templeton Fixed Income Group.
Can Anything Throw the Nine-Year-Old Bull Off its Stride?
The current US equity bull market turned nine years old on March 9, 2018. That’s the second longest run without a correction of 20% on record. It’s natural to wonder if the tide is going to turn.
Global Economic Perspective: March
We see the US economy as maintaining its current path of respectable but not overly robust growth. Underlying fundamentals and economic momentum remain constructive, while we do not foresee an acceleration in growth to a level that would swiftly create inflationary pressures.
Growth and Value Investing: A Complementary Approach
Growth and value investing are often seen as competing styles, with one outperforming or underperforming the other during different periods of time and market cycles. While the approaches may differ, Stephen Dover, head of equities at Franklin Templeton Investments, and Norm Boersma, chief investment officer of Templeton Global Equity Group, say growth versus value doesn’t have to be an either-or proposition.
Environmental, Social and Governance Factors in Global Macro Investing
Environmental, social and governance (ESG) factors are being recognized in fixed income investing as value-added indicators of potential economic performance. In the latest edition of “Global Macro Shifts,” the Templeton Global Macro team outlines how it integrates ESG factors into its research process.
How Infrastructure Companies Could Rebuild the World
While it seems US politicians rarely see eye-to-eye on anything, the fact that America’s aging infrastructure needs attention is one issue that has attracted clear bipartisan agreement. Yet, it’s unclear who is going to foot the bill for the sweeping improvements that seem to be needed.
Why US Tax Reform Could Drive Dividends Higher
In the first few months of 2018, some US companies and multinationals have raised their dividends by 10% or more—a higher percentage increase than we’ve seen in a few years.
Italian Election Result: Political Uncertainty is Business as Usual for Italy
No outright winner emerged from the Italian general election, but as David Zahn, Franklin Templeton’s head of European Fixed Income, explains, that situation is normal for Italy. He expects a muted response from European bond markets but cautions there may be consequences down the road if the authorities fail to take the need for reform seriously.
Global Economic Perspective: February
The opening months of 2018 have seen volatility return to global financial markets, but we think it is important to stress US economic fundamentals have remained broadly the same. After an unusually long period of calm in many markets, the reappearance of volatility at some point seemed likely, even if the speed of market gyrations has been unsettling for investors.
Italian Election Outlook and Why We Don’t See an ECB Rate Hike Before 2020
The upcoming Italian election is not attracting the same sort of attention among investors as votes last year in France and Germany. For that very reason, David Zahn, Franklin Templeton’s head of European Fixed Income, believes an unexpected result might provoke an outsized market reaction.
1-on-1 With Michael Hasenstab: Market Changes and Challenges
Hasenstab shares his thoughts on navigating today’s market challenges. He covers recent market volatility, inflationary threats in the United States, upcoming elections in Latin America, potential “fault lines” in Europe and credit risk in China.
Fundamental Changes That No Muni Investor Should Ignore
We believe it’s time to take a good hard look at the municipal bond market, because what was true 10 years ago, very well may not be true today.
Seeing the Big Picture in Market Corrections
While we don’t know when the equity market’s recent volatility will settle down, it’s important to consider the big-picture, fundamental backdrop for the market, and not get caught up in short-term sentiment swings, according to Franklin Templeton’s head of equities, Stephen Dover. And, he believes the fundamental backdrop still looks solid.
Keeping Calm When Volatility Strikes
The recent drops in the stock market can lead to a lot of questions and concerns about what investors should do. Considering the market has been on a historic run to continuous record highs and double-digit gains over the past year, it’s not entirely unexpected to experience a pullback.
Insights from the 2018 US Consumer Electronics Show
In January of this year, Franklin Equity Group’s Jonathan Curtis and Robert Stevenson headed to Las Vegas for the Consumer Electronics Show (CES), the biggest technology trade show in the United States. Here, they report back on some of the event’s highlights, including the battle of “smart speaker” platforms, the road ahead for autonomous cars, artificial intelligence and other tech trends.
The Next Chapter
It is with mixed emotions that I’m leaving Franklin Templeton Investments, but I’m excited about the next chapter of my life and what the future will bring. It’s been a bittersweet whirlwind of activity after I announced plans to retire after more than 30 years with the company.
The Underappreciated Story: How Brexit Threatens to Shift the Balance of Power in the EU
For fixed income investors eyeing opportunities in Europe, 2018 should be the year economic fundamentals reassert their worth, according to David Zahn, Franklin Templeton’s head of European Fixed Income. Nonetheless, Zahn believes many investors are underappreciating the long-term implications for Europe of the biggest political uncertainty for the region—Brexit.
First Quarter Hedge-Fund Strategy Outlook: K2 Advisors
In their first-quarter (Q1) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams believe favorable dispersion has created reasons for optimism in three main hedge-fund strategies: Long/Short Equity – Europe, Relative Value and Discretionary Macro. We believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.
Global Economic Perspective: January
The constructive conditions for the US economy remain in place, in our view, in keeping with an increasingly solid expansion across the rest of the world. US consumers have been benefiting from an economy that appears close to full employment and a stock market at record levels, while a vibrant corporate sector has been buoyed further by recent tax changes.
Emerging Markets Through the Years
As many of you may be aware by now, I announced plans to retire after more than 30 years with Franklin Templeton Investments, effective January 31, 2018. Before I share my final, parting words on this forum, I’d like to take a look back at how emerging markets have changed since I first began investing in the space.
Emerging Markets Fourth-Quarter Recap and Outlook: 2017 Ends with a Bang
Templeton Emerging Markets Group has a wide investment universe to cover—tens of thousands of companies in markets on nearly every continent. While we are bottom-up investors, we also take into account big-picture context.
Will US Tax Reform Alter the Muni Landscape?
With a new US tax law now upon us, many investors are questioning what the potential impacts may be on their portfolios—and on their potential investment selections going forward.
The Year Ahead: Will the US and Global Expansion Continue in 2018?
January is a month of resolutions and predictions, and perhaps more often than not, both tend to be abandoned come spring. While we don’t have a magic crystal ball to predict where the markets may be headed next, we do have a team of respected professionals who recently assembled to discuss whether they think last year’s economic momentum could continue—and where they see potential threats on the horizon.
Shedding Light on the Utilities Sector
US tax reform legislation dampened investor enthusiasm for utilities stocks in the last four months of 2017. Here, Franklin Equity Group’s John Kohli says that view may be creating opportunities for long-term investors. He digs deeper into industry fundamentals that he thinks make for an attractive longer-term investment case for the sector.
Emerging Market 2018 Outlook
I have been championing the case for emerging-market investing through many market ups and downs, but the task was a bit easier in 2017. Emerging markets (as measured by the MSCI Emerging Markets Index) saw a positive performance in 2017 and outperformed developed markets (as measured by the MSCI World Index) for a second year in a row.
Winded Markets May Face a More Difficult Climb in 2018
Global stocks benefited from broad economic growth in 2017, and some forecasters expect growth next year to be slightly better. Yet Franklin Equity Group’s Coleen Barbeau thinks equity valuations, particularly in the US market, already reflect that rosy outlook.
Global Investment Outlook 2018: Reflections on Growing Economies and Fading Stimulus
As markets shift away from the recovery era of monetary accommodation amid synchronized global growth, some investors may be wondering where potential opportunities can be found. We present a summary outlook for the year ahead - why US interest rates look poised to keep heading higher, why global equities may have more room to run and why investors may need to be more selective in the fixed income space.
US Tax Reform: This May Not Be the End
Congress successfully passed sweeping changes to US tax policy, which President Trump signed into law in December. Pierre Caramazza and Michael Doshier are pleased our current retirement savings system was left largely intact, but caution that this tax legislation still has some open items.
The Market Implications of US Tax Reform a Bit Unclear
Efforts to overhaul the US tax code have been a long time in coming (more than three decades), but this year it finally came to fruition. Congressional approval of sweeping tax reform will impact individuals, businesses—and the entire economy. Ed Perks, chief investment officer, Franklin Templeton Multi-Asset Solutions, offers his perspective of the likely economic and market implications.
Global Economic Perspective: December
We believe the US economy’s current combination of moderately strong growth and low inflation is likely to see a further slow-but-steady tightening of monetary policy, following the confirmation by the US Federal Reserve (Fed) at its December meeting of a widely expected interest-rate rise.
Back to Brazil
I visited Brazil in the spring of this year, but wanted to go back and explore more areas of the country. Brazil has faced some hard times but appears to be bouncing back from a prolonged recession, so I was interested to gauge the mood of the people and businesses there.
Self-Driving Vehicles: The Race to Get Them on the Road
Technological advancements over the past two decades have moved the idea of self-driving cars from the realm of science fiction to fact. Recently, Franklin Templeton Investments assembled a panel of professionals to discuss the competition between traditional vehicle manufacturers and technology companies in the race to develop a truly autonomous car.
Fed Delivers Another December Rate Hike
The US Federal Reserve delivered another interest-rate hike at its December monetary policy meeting, marking the fifth such move in its tightening series starting in December 2015.
US Tax Reform: What Investors Need to Know
On December 2, Senate Republicans managed to obtain enough votes to pass sweeping US tax reform legislation, but with several changes compared with the original House of Representatives' bill. At more than 470 pages, the "Tax Cuts and Jobs Act" is certainly not a light read. But, it has some important implications for individuals and corporations, for better or worse in some cases.
Why Macron’s Reform Agenda Is Boosting Business Optimism
Market observers have long blamed France’s labor code and other policies for the country’s slow growth and high unemployment. Yet, Katrina Dudley, portfolio manager, Franklin Mutual European Fund, sees a renewed sense of business optimism in France under President Emmanuel Macron.
China Clears Way for More Foreign Participation
At this time of the year, smog in Beijing, China, can be overwhelming. Throughout the city this fog/smog prevents the sun from shining through. But, the pollution problems have not clouded financial activity.
Tax Reform and the Possible Impact on Retirement
US tax reform looks to impact many areas of our lives, and one of these could be the way Americans save and invest for retirement. As we wait for Congress to refine and vote on the latest tax proposals, Drew Carrington, head of Institutional Defined Contribution at Franklin Templeton Investments, breaks down how lawmakers might target retirement dollars for tax revenue.
Is the Energy Sector Starting to Turn
Recalling the shocks of the sharp oil-price downturn back in 2014-2015, many investors have remained wary of energy stocks even as prices began to rebound this year.
Finding My Roots in Germany, and a Piece of Musical History
While emerging markets have been my area of focus for several decades, I also travel extensively to developed countries, too. It’s quite enlightening to see how once “emerging” countries still cherish their heritage.
Global Economic Perspective: November
The economic backdrop has remained supportive, both in the United States and globally, and should allow the US Federal Reserve (Fed) to continue raising interest rates at a measured pace, in our view. Jerome Powell’s nomination as Fed chair points to continuity in monetary policy in the near term...
How Technology Has Set Industries on a Journey of Opportunity
Technology is transforming nearly every industry, from healthcare to retail to transportation. Franklin Templeton Investments recently hosted an event examining the race to develop and market autonomous vehicles entitled, “Along for the Ride: Evaluating the Impacts of Self-Driving Cars.”
Where Might Credit Risks Exist? Follow the Supply
In 2017, corporate credit, including high yield, saw a resurgence in interest within a longer-term trend of increasing supply. In recent weeks, however, it has shown some cracks.
Eastern Europe and the Polish Surprise
My recent travels took me to Eastern Europe, where I had the opportunity to meet with colleagues and discuss the latest developments in the region. I thought I’d invite Greg Konieczny, who is based in Romania, to share some of his insights.
Our Message to Congress: Save Our Savings!
One of President Donald Trump's campaign promises was to overhaul the US tax code. The administration recently released its tax proposal, and the pundits have been weighing in on how it will affect us all. As Congress continues to debate the latest version of the plan, which passed through the House of Representatives on November 16,
Structural Growth Drivers Behind Emerging-Market Economies
My colleagues and I have been championing the message that emerging markets have changed—they are no longer just commodity plays. Old economic models are undergoing a transformation in many cases, opening up exciting new investment opportunities.
Why Australia May Not Join the Rate-Tightening Party
In 2017, the Bank of Canada and the Bank of England joined the US Federal Reserve in raising interest rates from at or near record lows. However, Chris Siniakov and Andrew Canobi of Franklin Templeton’s Australian Fixed Income team say the Reserve Bank of Australia will likely take a more cautious approach...
A Story of Risk Management, and Flying to the Moon
Risk management is a key part of many endeavors, from space travel to investment management. In either case, achieving one's goals requires awareness of what could go wrong, as well as careful attention to details in often-changing conditions to ensure the smoothest possible journey
The Fed’s Long Unwinding Road
In the latest edition of “Global Macro Shifts,” the Templeton Global Macro team examines the plans to start shrinking the US Federal Reserve’s (Fed’s) balance sheet and the potential impacts to financial markets.
Croatia’s Many Cultural Ties
Many years ago, I had visited Chile and wanted to learn more about a mining company there. Its CEO happened to be a Croatian who had immigrated to Chile and became quite wealthy. At the time of our meeting in the late 1990s, we traveled together to a large Chilean copper mine and he showed me the entire operation.
Preparing for a Possible Post-LIBOR World
Even though they may not know it, many global consumers have at least one loan tied to the London Interbank Offered Rate (LIBOR). Yet, LIBOR’s regulator is calling for an end to the rate by the end of 2021.
In the Know: Trump’s Fed Chair Pick Seen as Market Positive
Janet Yellen’s term as US Federal Reserve (Fed) chair ends early next year, and President Donald Trump decided not to extend her tenure as head of the US central bank. His pick to lead the Fed is Jerome Powell.
Retirement Income Planning Takes a Flexible Approach
If you are like many people, you probably have put plenty of thought into what your ideal retirement would look like. Maybe it involves exotic travel, pursuing a favorite hobby or spending more time with friends and family.
Science Fiction to Science Fact: The Rise of the Machines
The rapid expansion of artificial intelligence (AI) has generated a lot of excitement, but also some (perhaps justified) paranoia. Will computers replace—or even overtake—human beings?
Social Security Benefits Set to Increase, but Don’t Get Too Excited
Retirees were likely quite excited to see news that their Social Security benefits are set to rise in 2018. Gail Buckner, CFP, our personal retirement and financial planning strategist, says of course that’s a welcome development. However, she points out the 2% increase still leaves many Americans far short of what they are likely to need to meet expenses.
Why Abe’s Victory Could Help Lift Japanese Stocks
Shinzo Abe’s coalition victory in the October 22 snap election helps pave the way for his fourth term as Japanese prime minister. Here, Templeton Global Equity Group’s Cindy Sweeting and Alan Chua give their take on what Abe’s pro-growth policies could mean for Japan’s investment landscape.
Emerging Markets Third-Quarter Recap: A Stellar Rally
Templeton Emerging Markets Group has a wide investment universe to cover—tens of thousands of companies in markets on nearly every continent. While we are bottom-up investors, we also take into account big-picture context. Here, I share the team’s overview of what has happened in the emerging-markets universe in the third quarter of 2017, including some key events, milestones and data points to offer some perspective.
A Selective Look at Corporate Credit
Even in the face of rising US interest rates over the past year, corporate credit has been resilient, particularly in the high-yield category. Ed Perks, executive vice president and chief investment officer, Franklin Templeton Multi-Asset Solutions, takes a look at the corporate credit landscape and says fixed income investors still have plenty of reasons to be positive about the asset class.
Global Economic Perspective: October
Recent data have supported our view that the drivers of the US economy’s solid expansion remain in place, and should allow the US Federal Reserve (Fed) to move further toward its goal of normalizing interest rates. Some data releases have clearly been skewed by the recent major hurricanes, but we feel any negative impact on the economy is likely to be transient and outweighed by demand arising from reconstruction.
Putting Geopolitical Tensions into Perspective
When world leaders talk, markets react. And with social media becoming mainstream, politicians have a new way of getting their message to the masses.
China’s Congress Convenes
This month, China’s leadership kicks off its 19th Communist Party Congress, a meeting which sets the agenda for China’s political, economic and even social path in years to come. More than 2,000 delegates from China’s ruling elite attend the Congress, which takes place every five years.
Scoping out South Korea’s Investment Landscape
I’ve recently shared some of my views about rising tensions on the Korean peninsula as well as the political and business landscape in South Korea, which are often intertwined. While there are challenges and uncertainties in South Korea, we haven’t so far let that deter us as investors.
Fourth Quarter Hedge-Fund Strategy Outlook: K2 Advisors
K2 Advisors seeks to add value through active portfolio management, tactical allocation and diversification across four main hedge strategies: long/short equity, relative value, global macro and event driven. In their fourth-quarter (Q4) 2017 outlook, K2 Advisors’ Research and Portfolio Construction teams share the key market events they have an eye on.
Business and Politics in South Korea
My recent travels took me to South Korea at an interesting time given mounting tensions with its neighbor to the north. My colleagues and I got a pulse check on some of the reforms taking place, including those related to the family-run conglomerate companies known as chaebols.
Lessons Learned from the Global Financial Crisis
It’s been roughly 10 years since the 2007–2009 Global Financial Crisis began to unfold. It left lasting scars on the global economy and left many investors deeply wounded, too. Here, Tony Coffey, senior vice president and portfolio manager, Franklin Templeton Multi-Asset Solutions, explains why investors who sold everything in a panic probably bore the worst scars.
Does Macron’s EU Reform Agenda Need German Support?
Philippe Brugere-Trelat, Franklin Mutual Series executive vice president and portfolio manager, Franklin Mutual European Fund, discusses the outlook for French President Emmanuel Macron’s eurozone proposals and European equities in the current political climate. Is Macron’s eurozone “wish list” in jeopardy?
Tensions Rise on the Korean Peninsula
The world is watching the Korean peninsula. The situation between North and South Korea has been tense for a long time, but it has been escalating amid increasingly bold rhetoric and threats from the leaders of North Korea and the United States.
What’s Next For Europe as Merkel Is Re-elected
Angela Merkel’s re-election as German Chancellor was very much expected, but the implications of her victory are harder to predict. Here three of our portfolio managers with a particular interest in Europe share their views on what Merkel’s victory could mean for the region.
Why Gold-Mining Stocks Could Regain Some Luster
Here, Franklin Equity Group's Steve Land digs deeper into industry fundamentals that he thinks make for an attractive longer-term investment case for gold or gold stocks
Global Economic Perspective: September
The issues that have dominated news cycles in recent weeks should not obscure the robust underlying fundamentals of the US economy, in our view. Though some short-term weather-related disruption is possible, the economy seems to be maintaining its path of moderately strong growth, aided by healthy contributions from consumer spending and business investment.
The Fed’s Balancing (Sheet) Act
The Federal Reserve’s September policy meeting played out largely as expected, as US monetary policymakers left the central bank’s benchmark short-term interest rate unchanged. The Fed did clarify when it would begin to unwind its hefty balance sheet, and updated its economic forecasts and interest-rate projections.
Emerging Markets in the Digital Age
My colleagues and I have been actively speaking about the evolution taking place in many emerging markets over the past few decades. We’ve seen dramatic shifts occurring, with the often one-dimensional economic models of the past giving way to new and diverse growth drivers.
How the German Election Could Dictate Europe’s Future Direction
As Germany prepares to go to the polls in its general election, David Zahn, Franklin Templeton Fixed Income Group’s head of European fixed income, considers what the result could mean for Europe, the European Union and the eurozone.
Time to Reset Expectations?
Global markets have been relatively calm this summer despite many uncertainties. Geopolitical risks have continued across the globe, and in some areas, looming monetary policy changes also appear likely. A key question for many investors is whether the sleepy summer period of low volatility will give way to a more turbulent autumn.
Is France on the Cusp of a Thatcher Moment?
French President Emmanuel Macron is preparing to take on France’s powerful unions as he attempts to overhaul the country’s labor code. Here, Philippe Brugere-Trelat, Franklin Mutual Series executive vice president and portfolio manager, Franklin Mutual European Fund, explains why a Macron victory on this front could open up opportunities for investing in French equities.
Why ECB Tapering Could Prompt a Change in Bond-Market Philosophy
Speculation had been rife that the European Central Bank might have used its September Governing Council meeting to signal the start of tapering for its quantitative easing program. That confirmation didn’t come, switching attention to the October 26 meeting.
On Travels and Travails
As the focus of my work is emerging markets, I don’t spend a lot of time in the United States anymore, even though I grew up there. But like many people, I took a bit of time off this summer to enjoy a visit with family. We traveled to Mackinac Island in the state of Michigan, situated in Lake Huron.
ASEAN’s Golden Anniversary
The Association of Southeast Asian Nations (known as ASEAN) celebrated its 50-year anniversary in early August. The regional cooperative was established in 1967 with Thailand, Indonesia, Malaysia, Philippines and Singapore as founding members. Brunei Darussalam, Vietnam, Lao PDR, Myanmar and Cambodia later joined.
The End of the Eurozone’s QE Era?
As the traditional summer lull in market activity draws to a close, investor attention turns to key monetary policy meetings across the globe, kicking off with the European Central Bank meeting on September 7, which some commentators believe could see the announcement of a change in monetary policy approach.
Macron at 100 Days: New French President Faces Busy Autumn
A large chunk of French President Emmanuel Macron’s first 100 days in office came at a time when many Europeans were on holiday break. Here, Philippe Brugere-Trelat, Franklin Mutual Series Executive Vice President and Portfolio Manager, Franklin Mutual European Fund, says it’s unfair to judge Macron on such a short timeframe.
Travels in Myanmar: A New Frontier
Myanmar represents one of the newest frontier markets, and is one I’ve been anxious to learn more about. Long isolated with a military regime, Myanmar has been undergoing a transition over the past few years. After five decades of military dictatorship, it is now under civilian rule.
Global Economic Perspective: August
In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group takes a look at recent US economic data, and increased skepticism among many market participants about whether the Federal Reserve will implement another increase in interest rates before the end of the year.
US Tech Sector: Continued Run-Up or Correction Coming?
Since the infamous “dot com” meltdown nearly two decades ago, people have tended to question any sort of extended run-up in technology-sector stocks.
Las Vegas, Macau and the Future of Work
A few months ago I was honored to speak at the prestigious SALT investment conference in the US city of Las Vegas. It had been quite a while since I’d been to Las Vegas. The activity and energy of the place really surprised me, even though I don’t gamble.
Navigating an Uncertain Second Half
Receding political anxiety and a gathering economic recovery in Europe helped global equity markets advance in the first half of 2017. Yet Templeton Global Equity Group’s Cindy Sweeting and Tony Docal say investors should be somewhat cautious in the second half of the year.
India’s Reform Movement Gains Momentum
India has embarked on a sweeping reform movement under Prime Minister Narendra Modi, which has attracted investors’ attention. Templeton Global Macro CIO Michael Hasenstab recently visited India, and takes a look at some of the reforms he’s most excited about as a global fixed-income investor.
Mid-Year Outlook: The Resurgence of Emerging Markets
Emerging-market (EM) equities (as represented by the MSCI Emerging Markets Index) have extended their 2016 recovery. In the first half of 2017, the MSCI EM Index returned 18.60%, compared with an 11.02% gain in the MSCI World Index.
An Active Look at Small-Cap Investing
Overall, we believe small-cap stocks in emerging markets offer attractive prospects for active managers. A multitude of mispriced securities, market inefficiencies and a paucity of research provide considerable investment opportunities, in our view.
Global Economic Perspective: July
In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group dives into diverging central bank policy and weighs in on whether the European Central Bank is likely to be less accommodative—and what its timing might look like.
Don’t Believe Everything You Hear about Social Security!
If you’re like many working Americans, you may be concerned about the state of Social Security and whether it will be there for you when you retire. Gail Buckner, CFP, our personal retirement and financial planning strategist, explores some myths about Social Security and eases some concerns about its future.
How the Asian Financial Crisis Reshaped Emerging Markets
Twenty years ago, the world was standing on the brink of the Asian Financial Crisis. Here, Templeton Global Macro CIO Michael Hasenstab looks at how the response of local policymakers in the subsequent two decades has impacted emerging markets in general.
Despite Scary Headlines, No Big Changes to Social Security’s Outlook
Every year the Trustees of the US Social Security and Medicare trust funds provide their report on the current and projected financial status of these programs.
Hedge-Fund Strategies Get a Second Wind
After three disappointing years in the middle of this decade, it's been a smoother course for hedge-fund strategies over the past 12 months. K2 Advisors' Senior Managing Director Brooks Ritchey offers his analysis to explain why he sees some tailwinds ahead.
Emerging Markets Second-Quarter 2017 Recap: The Streak Continues
Here, I share the team’s overview of what happened in the emerging-markets universe in the second quarter of 2017, including some key events, milestones and data points to offer some perspective.
Third Quarter Hedge-Fund Strategy Outlook: K2 Advisors
K2 Advisors seeks to add value through active portfolio management, tactical allocation and diversification across four main hedge strategies: long short equity, relative value, global macro and event driven.
Addressing Always-Connected Technology
Intensifying demand to have everything at one’s fingertips seems to be the driving force behind the innovation in technology, finance and even industrials.
Addressing Always-Connected Technology
Intensifying demand to have everything at one’s fingertips seems to be the driving force behind the innovation in technology, finance and even industrials. Franklin Equity Group’s Matt Moberg, vice president and portfolio manager, Franklin DynaTech Fund, observes a general shift in the technology industry to address evolving consumer needs.
Looking Back 20 Years: Lessons of the Asian Financial Crisis
July marks the 20th anniversary of what was considered to be the start of the Asian Financial Crisis (AFC), which sent shockwaves through the region and beyond. The crisis was thought to have started in Thailand in the summer of 1997, although its roots stem from even earlier systemic problems, namely in the financial sector.
Short-Term Fears Seem to Affect Millennial Investors in Particular
Many investors who lived through the Global Financial Crisis of 2007-2009 still might bear some scars, according to Franklin Templeton’s annual Retirement Income Strategies and Expectations (RISE) survey. The survey explores individuals’ attitudes and expectations about retirement and how prepared people feel regarding their future.
China: Building Roads to the Future
China is forging new global connections and expanding trade and market access in many ways. The country does seem to be opening its capital markets and working to become more transparent. We have seen the success of stock linkages between mainland China and Hong Kong, and recently, a new bond market connection has been announced.
Value Update: Where Is the Next Pocket of Opportunity?
A year ago, Templeton Global Equity Group’s Norm Boersma, Cindy Sweeting and Heather Arnold penned an article for Beyond Bulls & Bears discussing the signs of a revival in value stocks. With the nascent rally in global value stocks underway, the trio return along with their colleague Tucker Scott to outline where they now see the next pockets of overlooked potential opportunities for patient bargain hunters.
Global Economic Perspective: June
In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group examines whether inflation may gain momentum in the United Sates, why it’s pleased the European Central Bank has resisted tapering of its quantitative easing program and why investors in all markets need to be cognizant of political risks.
Uncharted Terrain: Today’s Global Market Drivers
Despite some uncertainties, economic improvements in developed and emerging markets have supported a positive mood across both equity and fixed income this year.
Readers’ Questions Answered
While I can't always respond to each of your questions directly, I do enjoy hearing from my readers and followers and value your feedback. I am quite delighted to see people from all over the world reaching out via my blog, Twitter and LinkedIn. Keep them coming! Here are a few; hopefully one of my responses will answer a question of yours.
UK Election Result: Grounds for Optimism in the Medium Term?
As equity markets digest the implications of another surprising UK election outcome, Colin Morton, vice president, portfolio manager, Franklin UK Equity Team, analyzes the immediate aftermath and asks whether the result could offer some grounds for optimism over the medium term.
Theresa May's Shock Defeat Threatens Further Volatility
In the sort of unexpected twist that observers have come to expect from elections recently, UK voters have dealt a bitter blow to Prime Minister Theresa May, robbing her of her narrow parliamentary majority. With further financial market volatility on the horizon, David Zahn, head of European Fixed Income, Franklin Templeton Fixed Income Group, offers his view of the situation.
The Politics of Health Care
Changing political policies and priorities can impact certain market sectors-for better or worse. Health care costs and prescription drug pricing were hot-button issues in the United States during the 2016 presidential election, and the Trump administration has been pushing forward its own health care agenda. So far this year, the health care and biotechnology (biotech) sectors have shaken off uncertainty, but are investors too optimistic? Franklin Equity Group's Evan McCulloch says drugs actually behave more predictably than politicians-but he sees reasons to affirm the market's positive outlook.
Busting the Frontier-Market Myths
Although frontier markets are a small subset of the emerging market universe, we think they represent an important constituency that offer some compelling potential opportunities. Here, I've invited my colleague Carlos Hardenberg, senior vice president and director of frontier markets strategies at Templeton Emerging Markets Group, to outline some of the opportunities he sees in these dynamic markets and debunk some of the urban myths..
Brazil’s Political Bumps
Just when Brazil’s economy seemed to be turning a corner, a new political scandal has caused a strong market reaction, sending Brazil’s stock market into a tailspin. President Michel Temer, who came into office following the impeachment of former President Dilma Rouseff due to a corruption scandal, is now caught up in a corruption scandal of his own
Spryng into Saving for College
As the cost of a college education continues to rise, parents (and their children) are coming up with creative ways to finance it.
Why Liquid Alternatives Now
K2 Advisors’ Founding Managing Director David Saunders is speaking at the prestigious SALT conference this month in Las Vegas, where he’ll discuss the liquid alternatives landscape and why he thinks now’s the time for investors to consider this asset class.
Trade and Taxes in a World With Borders
In the latest edition of "Global Macro Shifts," the Templeton Global Macro team examines potential US corporate tax reform and the possible impacts of a border adjustment tax (BAT). Read an excerpt from the paper.
South Korea Votes for Change
Voters across the globe seem to be clamoring for change, and South Korea’s presidential election may be viewed as another example. Moon Jae-in, considered a left-leaning liberal, won the presidential election in South Korea.
French Election Result: Macron Wins, But Can He Deliver?
There were no surprises as French voters elected Emmanuel Macron as their new president after the second round of voting. Franklin Templeton’s investment professionals share their thoughts on the prospects of a Macron presidency and suggest it might not be plain sailing for the self-styled political outsider.
An Ocean Voyage in Southeast Asia
Air travel is a quick and convenient way to get from one place to the next, but sometimes it’s nice to slow down and enjoy the journey. Traveling by sea gives you time to contemplate what you’ve seen at different ports of call, from sleepy seaports to bustling shipping and shopping centers.
US Equities: Policy Smoke or Solid Pillars?
With US equities charging to new heights, some market observers are questioning whether the market is climbing a “wall of worry” based in part on policy promises that haven’t yet been delivered.
An Exciting Time for the Energy Sector
Oil is back in the news, with the price of benchmark West Texas Intermediate (WTI) crude roughly doubling from last year’s lows driven by steady demand and coordinated supply cuts by Organization of Petroleum Exporting Countries (OPEC) and non-OPEC producers.
French Election Result: It’s Not Yet a Done Deal
There's some clear blue water between the two candidates contesting the final round of the French presidential elections on May 7: Marine Le Pen and Emmanuel Macron. Here, David Zahn, head of European Fixed Income, Franklin Templeton Fixed Income Group, shares some thoughts on the potential market implications of the race.
The Case for Listed Infrastructure: Strengthening the Foundation for the Global Economy
The sorry state of US infrastructure was a major talking point during the 2016 US presidential election, and was seen as one of the few areas that could garner bipartisan political support. But certainly, the need for infrastructure is a global issue that can offer a bridge to economic growth, particularly in emerging markets. Here, the Franklin Real Asset Advisors team builds a case for investing in infrastructure-related securities
Sand Piles and Markets April 20, 2017
The US equity market has been climbing since 2009, and many investors are finding reasons to believe the ascent should continue this year.
Global Economic Perspective: April
Franklin Templeton Fixed Income Group talks monetary policy, European politics in the April Global Economic Perspective.
On a recent visit to Argentina, I was interested to see how things have changed under the leadership of a new administration—in many cases, due to constructive policy reforms.
Second Quarter Hedge-Fund Strategy Outlook
In their second-quarter (Q2) 2017 outlook, K2 Advisors’ Research and Portfolio Construction teams share the key market events they have an eye on.
Cutting Through the Political Noise for Opportunities in Europe
Amid the political uncertainty in Europe prompted by upcoming elections and the start of Brexit negotiations, another story is quietly playing out, involving improved economic and corporate conditions.
Can Strategic Beta Make You a Smarter Investor?
Many investors still have misconceptions about exchange-traded funds (ETFs), including the type of market exposure they are getting with traditional capitalization-weighted ETFs. Dr. Chandra Seethamraju, director of systematic modeling, Franklin Templeton Solutions, gives us the lowdown on the concept of “beta” within ETFs—specifically strategic beta—and how it can offer a smarter investment approach.
Brazil and Other Bright Spots in Latin America
I’ve just been on an extensive trip through Latin America, starting in Mexico and proceeding to Peru, Chile, Argentina and Brazil. Here, I offer a few highlights—including reasons for optimism.
An Investor’s View of the French Presidential Election
As far as most commentators are concerned, the first round of the French presidential elections, due to take place on April 23, will be a race to see who faces the far-right National Front leader Marine Le Pen in the run-off in May.
Beyond the Headlines: Finding Opportunities in Today’s Markets
With markets reacting in part to geopolitical events, it’s hard not to be distracted by news headlines. To help sift through some of the noise, several of our senior investment leaders recently participated in a roundtable discussion of the events shaping the global markets today, the implications for investors and where they see potential opportunities ahead.
Why Things Aren’t What They Used to Be in Emerging Markets
The prospect of stabilizing commodity prices and improving corporate earnings has helped rebuild investor interest in emerging markets over the past year. But returning investors may find the constituents of today’s emerging markets are very different from those of the past.
The Cutting Edge: Not Just for Tech Companies Anymore
The new US administration’s immigration policy may have angered some technology-sector executives, but the Trump administration has signaled an intention to put technology at the heart of its economic roadmap.
Does Dutch Election Result Signal an End to Europe’s Populist Surge?
Franklin Templeton Fixed Income Group’s David Zahn examines the issue of populism in Europe, including Dutch elections and a possible second Scottish referendum.
South Africa: Key Issues and Challenges
As I’ve previously written, I had the opportunity to visit South Africa recently and meet with a number of executives at companies there, as well as talk to people and observe various trends.
Why Fixed-Income Investors Shouldn’t Fret About Fed Tightening
Following the Federal Reserve’s decision to raise interest rates at its March policy meeting, Franklin Templeton Fixed Income Group CIO Chris Molumphy weighs in on why fixed-income investors shouldn’t fret.
Global Economic Perspective: March
In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group weighs in on the factors spurring the US Fed’s decision to raise rates, why the ECB’s Draghi is likely to resist calls to adopt a more hawkish line, and why the backdrop for emerging markets has improved.
South Korea’s Presidential Impeachment
South Korea’s constitutional court decided to uphold the parliament’s impeachment of President Park Geun-hye amid a corruption scandal that has plagued the president and her adviser, Choi Soon-sil.
Cracking the Code on Social Security Benefits
If you're like most working people, you've probably received a statement in the mail from the Social Security Administration listing your potential future benefits. Trying to figure out how Social Security arrived at those mysterious figures requires some detective work. Here, Gail Buckner, CFP, our personal retirement and financial planning strategist, attempts to crack the code. She discusses how your benefit is calculated and offers some strategies on how to maximize it.
South Africa’s Slow Transformation
I recently had the opportunity to visit South Africa, which has seen its fair share of challenges over the past few years.
The Current State of the US Utilities Sector
US equities have generally been supercharged in the wake of the presidential election, but the utilities sector’s relative performance has dimmed instead.
A Travel Transformation in Emerging Markets
I recently penned a blog on opportunities within leisure and entertainment in emerging markets, including the travel industry. With improved infrastructure and more access to reasonably priced flights, more travelers have been able to explore exotic locations they had previously only read about or seen on television.
K2 Advisors : Why We Like Activist Hedge Strategies
Given the unpredictability of today’s financial markets, many investors are looking to reduce the impact of market volatility on their portfolios. Hedge-fund strategies—a type of alternative investment strategy—may help by potentially offering additional diversification, new sources of return and reduced risk.
Global Economic Perspective: February
For all that political events and speculation about policy direction have dominated news cycles over recent months, the US economy’s key fundamentals have changed remarkably little, in our view. The backdrop appears to us to be constructive, as a healthy level of consumer spending has been increasingly reinforced by a recovery in corporate earnings and investment.
An Emerging-Market Evolution
The way investors think about emerging markets has been evolving—along with the markets themselves. One thing we at Templeton Emerging Markets Group emphasize is that one can’t consider emerging markets as one asset class; the opportunities are very differentiated between regions, countries and markets, with different fundamentals shaping them.
Art, Entertainment and Leisure in Asia
Happy Chinese New Year to all my friends and followers! There’s no question it’s a big holiday for leisure and entertainment. Last year, retail and dining expenditures for the Lunar New Year came in at 754 billion yuan ($US115 billion), according to China’s Ministry of Commerce.
Could the Rally in Global Equities Keep Rolling?
Although global equity markets have rallied recently, some investors may feel unsettled about the changes occurring in many parts of the world—and what those changes could mean for their portfolios.
The Sectors Most Likely to Cheer US Tax Reform
The financial markets seem to have high hopes for new business-friendly policies in the United States following Donald Trump’s inauguration as the country’s 45th president on January 20.
Don’t Underestimate the UK’s Brexit Negotiating Position
Earlier this month, David Zahn, head of European Fixed Income, Franklin Templeton Fixed Income Group, set out some thoughts on the political and economic landscape for Europe in 2017.
Europe’s Main Event: Economics vs. Politics
European equities have been in the tank for years, as the region has struggled with lackluster growth since the 2007-2008 financial crisis. But just as it appears that European stocks may be poised to benefit from higher global economic growth levels and an uptick in earnings, potential fallout from national elections...
Celebrating a 30-Year Anniversary
This month marks my 30-year anniversary with Templeton Emerging Markets Group! The opportunity to open up new emerging markets, learn about new industries, meet wonderful people around the world and most of all be part of the Templeton emerging-markets family has been a real blessing.
Latin America: The Rise and Fall of Populism
In the latest edition of “Global Macro Shifts,” the Templeton Global Macro team explores Latin America’s failed experiments with populism and the important lessons those experiences have for the developed world.
A Case Study in Retirement Planning: Why It Can Pay to Delay
If you are like many busy working people with many responsibilities and stresses, you probably have little time to think about retirement. But as the wise Ben Franklin once said, “If you fail to plan, you are planning to fail.”
China and Shadow Financing
For the first time ever, the president of China was in attendance at the World Economic Forum Annual Meeting in Davos this month.
European Bond Market: What Lies Beyond the Politics?
Although continued political uncertainty looks set to dominate the investment agenda for 2017, much as it did in 2016, David Zahn, head of European Fixed Income, Franklin Templeton Fixed Income Group, feels investors need to take heed of other themes that may be bubbling under the surface in the year ahead.
Emerging Markets Q4 2016 Recap: A Wobbly Quarter, but Reasons for Optimism
Templeton Emerging Markets Group has a wide investment universe to cover—tens of thousands of companies in markets on nearly every continent! While we are bottom-up investors, we also take into account big-picture context.
ETF Trends to Watch in 2017
The turn of the calendar to a new year brings new year’s resolutions—and predictions. While many market pundits are now making their prognostications for the year ahead, David Mann, head of Capital Markets, Global Exchange-Traded Funds (ETFs), doesn’t claim to have a crystal ball that will reveal where the market is headed next.
Driving a Case for Convertibles in 2017
When many people hear the word “convertible,” carefree driving, sunny roads and wind-blown hair probably come to mind. Franklin Equity Group Portfolio Manager Alan Muschott thinks of convertibles as something entirely different.
Politics, Policy Uncertainties Likely to Sway Markets in 2017
For fans of surprise endings, especially in political contests, 2016 was a banner year. Unexpected election outcomes swung global equity markets both up and down and continue to influence the outlook for many sectors and companies.
In just a few decades, Vietnam has undergone a dramatic transformation, from an agrarian society to one that has embraced the modern era. Its youthful population and growing middle class have helped drive solid growth—and opportunities for many global investors.
2017 US Growth Investing Outlook
With the US stock market roaring ahead to close 2016 on a high note, the question for many investors is whether the momentum can be sustained.
Global Economic Perspective: December
Emerging-Market Equity 2017 Outlook
What’s ahead for emerging markets in 2017? Stephen Dover, managing director and CIO of Templeton Emerging Markets Group and Franklin Local Asset Management, and Mark Mobius, executive chairman of Templeton Emerging Markets Group, present their emerging-market equity outlook.
In the Know: Fed Lifts Rates, but “Lower for Longer” Likely
The markets can finally put the US interest-rate debate to bed (at least for the time being) as the Federal Reserve lifted its benchmark short-term lending rate for the first time in a year.
Focusing on Fundamental Improvement
My colleague Carlos Hardenberg shares his perspective on the opportunities and challenges he sees in emerging markets today and as we head into 2017.
Finding the Positives from a Tumultuous Week in Europe
Developments in Europe, including the resignation of Italian Prime Minister Matteo Renzi and the shock decision of the European Central Bank to reduce the amount of its monthly bond-buying program next year, have contributed to a tumultuous week for investors.
When It Comes to Retirement, 70 Is a Magic Number
If you are approaching retirement, maximizing your potential income is likely on your mind, and it can pay to plan ahead.
Readers’ Questions Answered
While I can’t always respond to each of your questions directly, I do enjoy hearing from my readers and followers and value your feedback.
Why a Continued Rise in Gold Prices May Still Pan Out
In the first seven months of the year, gold prices regained some luster lost after a multi-year slump, buoyed by new financial risks and geopolitical developments.
There’s More to India Than Just the Growth Story
India boasts more than 5,000 different stocks spread across a wide range of sectors, making the Indian equity market a sweet shop for investors, beating even the United States in terms of the number of companies available to invest in.
Central Banks and Stock Markets: a BOJ Case Study
One of the most fascinating aspects of current markets around the world is the degree to which central banks appear to be influencing the movement of not only bond markets but also equity markets.
Global Economic Perspective: November
Franklin Templeton Fixed Income Group® offers its perspective on the global markets. In this Issue: Uncertainty Ahead of Trump Administration but Fundamentals Remain Constructive; Divergence in Monetary Policies Between World’s Leading Central Banks Likely to Remain Intact; and Eurozone Bond Yields Rise but ECB Likely to Adjust Rather Than Signal End of Quantitative Easing
Why Markets are More Cautious About the Next Potential Political Pitfall
Donald Trump’s victory in the US presidential election means that markets have been caught off guard by unpredicted outcomes in two-way political races twice already this year. As we enter the final weeks of campaigning ahead of the Italian constitutional referendum, David Zahn, head of European fixed income, Franklin Templeton Fixed Income Group, explains that markets appear to be taking a more cautious approach to the next wave of potential political pitfalls, including next year’s general elections in Austria, the Netherlands, France and Germany.
Counting the US Election Implications on the Global Markets
While the US election uncertainty may finally be behind us, whether and how pre-election rhetoric will ultimately be reflected in policy shifts remains unknown.
A Fresh Look at DOL and Retirement Issues Under Trump
While we don’t really know what’s to come in terms of financial and retirement-related policies on the horizon under the Trump administration...
Emerging Markets and a Trump Presidency: No Need to Panic
The US presidential election resulting in a victory for Donald Trump has many potential implications for markets around the world, including emerging markets. When it became clear that Trump would emerge the winner, stock markets echoed the shock many US voters felt. Emerging markets were particularly volatile.
Notes from the Trading Desk – US Election Special
Franklin Templeton's Asian and European trading desk teams evaluate the aftermath of the US election in a special edition of Notes from the Trading Desk.
Hasenstab: US Election Rhetoric vs. Realities
As the election results were confirmed late Tuesday night in the United States (around midday Wednesday in Asia), there was a pretty violent reaction in many markets and across asset classes and regions. Michael Hasenstab, CIO of Templeton Global Macro, opines on the drivers and meaning of today’s market twists and turns.
America Decides: A Vote for Change
The next 100 days are critical for the newly elected officials in the United States, and we will continue to gain clarity on many policy items over that timeframe. There is no doubt that this election, and outcome has challenged the status quo and we could see even small issues become larger should impasses persist.
Stock-Market Value Hunting—and a Potential Post-Election Outcome
When looking at various countries or regions where we invest, we consider emerging markets as representing a disproportionate amount of where equity value exists today after several years of underperformance relative to developed markets.
Risks, Opportunities and Adventures in Borneo
Borneo is the world’s third-largest island and its equatorial rainforest is home to many species of plants and animals, which attracts tourists from around the world. Borneo also boasts significant power resources, including hydroelectric power, coal and natural gas deposits; liquefied natural gas is a key export.
What’s Driving US, European Voter Resentment?
Voters in a democracy often respond more to perception than reality, particularly when it comes to issues of patriotism, pride and identity. It isn’t always just about the bottom line.
Helicopter Money: Pulling a Brick with a Rubber Band
You may have heard the term “helicopter money” bantered about in the press of late. Robert Christian, senior managing director and head of research, K2 Advisors, explains what this moniker means, why it has gotten some recent buzz and whether global central banks may be considering letting it fly.
Fixed Income Markets and the US Election: What Really Matters
In terms of US monetary policy, on balance we don’t think the election itself will materially impact the path of interest rates unless the economic fundamentals materially reversed. Additionally, the passage of election uncertainty should remove another potential objection to continuing on a gradual tightening path.
Smartphones and Software Keys to Realizing “Dot-Com Dreams”
We believe many of the unfulfilled dreams of the dot-com era are finally being realized as the convergence of hyper-connected consumers and increasingly sophisticated technology and software has allowed companies to provide services that seemed impossible even 10 years ago.
Thai People Mourn Loss of Their King
There are concerns that political differences could again re-emerge in Thailand that have in the past been destabilizing. However, in our view, the backdrop to a royal succession has improved drastically in recent years.
Emerging Markets Q3 Recap: Sentiment Remains Strong
Companies in the consumer-related sectors and information technology are particularly attractive to us in the current environment, especially as technology is becoming more integral and competitive in emerging markets.
Global Economic Perspective: October
While heartened by the bounce in oil prices after the multi-decade lows reached early in the year, any significant further rally in energy prices would seem to us to require a far more vibrant global economy. As the IMF’s (and the Fed’s) relatively subdued outlooks make clear, it is hard to anticipate such a scenario occurring anytime soon.
Mexico Entangled in US Election as Banxico Tightens
Regardless of statements about more restrictive trade, it will be very difficult if not impossible for US-Mexico trade to be destroyed since the links are too deep between the two countries.
US Election Implications for Europe: What Many Observers Are Missing
Global political uncertainly has been plaguing investors around the world for months. With the UK Brexit vote behind us, attention now turns to the US presidential election.