Global Markets

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.

Preferred stocks are what’s known as hybrid securities, meaning the asset class displays both equity and fixed income characteristics.

Resurgent energy prices could contribute to higher for longer monetary policy.

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.

The Chinese yuan has lost nearly 6% of its value against the U.S. dollar this year, while Shanghai-listed stocks are off about 8% from their 2023 high, set back in May.

U.S. stocks typically post their best returns in the final quarter of the year. Our review of S&P 500 performance since the index’s inception in 1957 found an average Q4 uptick of 4%. (Q1 was next best at an average of 2%.)

The prevailing narrative about the U.S. economy is that it’s ‘resilient’: despite rapid rate hikes, economic growth has held up and may even be accelerating.

We believe a mild U.S. recession is more likely than not in 2024, although a soft-landing scenario cannot be ruled out. A recession is also likely in the UK and eurozone, but appears less likely in Australia.

Active management in ETFs are gaining market share in 2023, as leading managers bring their best ideas into the ETF industry.

Rising real interest rates invariably trigger recessions. The residual impact of pandemic related
behaviors delayed the impact in this cycle.

The Bank of Japan met last night to cap off a week of central bank activity.

Despite the Fed’s aggressive monetary tightening and the regional banking crisis earlier this year, the U.S. economy has been surprisingly resilient. Bond yields continue to rise, with long-term Treasuries at their highest level since October 2007.

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.

Intermission is over. Today we resume my series on the global cycle theories that, probably not by coincidence, all point to major change unfolding in the next few years. Finishing it may take some time since I keep finding new material.

China’s growth has slowed, but the context is important—an intentional transition to a more balanced economy that relies less on investment and exports.

2023’s market rally continues to center itself on the big tech comeback with certain themes exhibiting strength like artificial intelligence (AI) and cloud computing. While these themes can offer traders short-term opportunities, they can also persist in the long term as growth plays.

Like any recovering reporter, I like to keep tabs on my old beats, and the marijuana ETF space never disappoints. Or, perhaps more accurately, it never stops disappointing.

Quarterly commentary giving an overview of the markets and the importance of having and implementing a strategy when investing in the markets.

Artificial intelligence (AI) has been at the forefront of the 2023 market rally, offering investors long-term growth opportunity as well as short-term trading opportunities. For the latter, consider a pair of leveraged exchange traded funds (ETFs) from Direxion Investments.

Monetary tightening still continues in the form of quantitative tightening, bringing potential volatility, earnings pressures, and lackluster performance to stock markets.

Small-cap stocks and related exchange traded funds are taking a back seat to large-cap counterparts this year. The Russell 2000 Index has shed almost 5% over the past month. However, some market observers remain constructive on smaller stocks.

I’ve been writing financial newsletters for 15 years. I have seen a few cycles. There have been good times and bad times, thrills and spills.

In our latest Quarterly Letter, Ben Inker and John Pease discuss the new economic regime, how investors can prepare for a recession, and the merits of combining high quality and cheap assets in today’s environment.

Fed Chair Jerome Powell’s Sept. 20 remarks represented the first time the Fed leadership has sanctioned the idea that the equilibrium policy rate has risen this year; previously, Powell repeatedly avoided taking a view.

However, the regulators made asset management news with their focus on “truth in advertising.” Despite their well-intentioned efforts, it will remain paramount for investors to do their homework and look inside the portfolio.

Evidence of China's slowdown is appearing in unexpected places.

EnerSys is a leader in stored energy solutions. Based in Reading, Pennsylvania, this company makes batteries, chargers, and accessories for transportation, aerospace, and defense.

China’s goal of self-reliance will certainly rely on innovation. Right now, the second-largest economy sits firmly atop the list of the World Intellectual Property Organization (WIPO) when it comes to innovation on a global scale.

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.

Private infrastructure offers unique investment characteristics and potential diversification benefits for portfolio construction.

Even the best scientists in the world cannot reliably forecast drug-test results, so why should investors gamble? Quality businesses are key for healthcare stocks.

Investors have been increasingly allocating to various alternative investments. However, I don't see them as distinct assets deserving of allocations. As I discuss in my article below, I consider alternatives investment styles and as optional for portfolios as taste is for nutrition.

It might be hard to believe after the crypto winter of 2022, but monetary tightening by global central banks could be supportive of Bitcoin upside.

In many ways, 2023 continues to be the mirror image of 2022, with the most volatile assets being some of the best performers for much of the year.

Today, in a shock decision, the Bank of England (BoE) left its policy rate at 5.25% by the tightest possible majority vote of 5-4. All but one of 65 economists polled by Reuters had predicted that the BoE would raise the rate to 5.5%.

Wednesday’s Federal Reserve (Fed) decision to keep the federal funds rate unchanged wasn’t a surprise at all. Markets, as we argued last week, had predicted that the Fed was going to stay put and that is what it did.

The Northern Trust Economics team shares its outlook for major markets in the months ahead.

A balanced portfolio needs assets with strong return potential and those that may provide downside mitigation. We believe direct lending can deliver both—a potentially valuable feature, particularly in today’s uncertain market.

Energy and Gold Produces Face Increasing Pressures, Crimping Supply.

We started RBA in 2009 primarily because we thought the US stock market was entering one of the biggest bull markets of our careers. However, most investors did not agree with our bullishness. Now, risk aversion seems a thing of the past.

The hit TV series “That 70s Show” aired from 1998 to 2006 and focused on six teenage friends living in Wisconsin in the late 70s.