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.
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.
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.
Despite some uncertainties, economic improvements in developed and emerging markets have supported a positive mood across both equity and fixed income this year.
The election of President Donald Trump in November created uncertainty for alternative energy investors due to his anti-environmental, pro-coal stance. His election puts the main alternative energy policies in the United States, such as the Investment Tax Credit (ITC) for solar installations, Production Tax Credit (PTC) for wind installations and the Clean Power Plan (CPP), at risk. Recently, his anti-environmental stance was put in to action with an executive order to dismantle environmental protections.
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.
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.