Consumer spending and business fixed investment remained strong, pointing to continued domestic economic growth. Notably, business fixed investment growth, represented by private domestic investment, accelerated to 5.4% year-over-year growth in the fourth quarter of 2017, from a low of 0.71% in the third quarter of 2016.
Rising rates are adding new risks to equity markets. Stocks of companies that are saddled with debt have underperformed recently. And leverage is especially high in sectors widely seen as safe havens.
Most global equity markets declined in the first quarter despite the corporate sector generally reporting reasonable fundamental data. As a result, GMO's 7-year equity forecasts mostly improved over the first quarter. Even with these improvements, International and U.S. equities are still forecast to have flat to negative real returns over the next 7 years, with Emerging equities remaining an exception, forecast to have a positive real return of 1.9%.
A review of last month’s market-moving events across countries and asset classes.
Later this year, Rio Tinto will seek board approval to spend $2.2B to build the world’s first “intelligent” mine, a network of robots and autonomous vehicles all working together on the site of the earth’s largest iron ore complex in Western Australia.
Implementing the use of Environmental, Social and Governance (ESG) factors into the investment process presents different challenges for fixed income and equity investors.
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.
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.
Worried about rising rates? Don’t take your money out of the municipal market and put it in cash. That could cost you.
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.