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.
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.
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.
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.
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.
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.
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.
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.
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.