Search Results
Results 1,101–1,150
of 1,239 found.
The Winds of Market Change
As we cross the mid-way point of the year, you might say the equity and fixed income markets have been a lot like the recent weather in much of the world: uncertain, and tending toward extremes. The perception of a stormy economic climate has driven some equity valuations to extremely low levels, particularly in Europe, and investors have been pouring into fixed income despite extremely low yields.
Spinning Pessimism Into Opportunity
In the markets and in life, we face bullish and bearish periods. Some days are good and some days are bad. But even on bad days, good things can and do happen, which may explain our sometimes Pollyanna-sounding persistence on the existence of a bright side even in the face of somber-sounding issues like fiscal cliffs and austerity measures.
Dividends: The Next Bubble?
Dividend-paying stocks have received a good deal of attention this yearand for good reason. Ed Perks, senior vice president and director of the Core Hybrid Portfolio Management Group at Franklin Templeton, and Don Taylor, senior vice president and portfolio manager for Franklin Equity Group, suspect it's these fearful prognostications that are overinflated, not the asset class. As they see it, the dividend-paying stock universe is expanding, and deserves investor attention.
The Russian Evolution
It might be tempting to say "everything old is new again" in Russia, given the return of Vladimir Putin to the presidency after a four-year hiatus, an interesting development in the country's political evolution. I think Russia has also evolved a great deal as an investment destination in the past two decades and holds great potential, although there is still more work to be done to open the markets and instill investor confidence.
Taking Rational, not Rationalized, Risks
Like beauty, "risk" is often in the eye of the beholder. What might seem "risky" to one person (such as traveling to an exotic destination) might be an exciting adventure for someone else. Wylie Tollette, Senior Vice President and Director of Performance Analysis and Investment Risk at Franklin Templeton Investments, travels around the world, working with portfolio managers to focus on a different kind of risk.
The Emerging Story in Europe
There's a unique and often overlooked story coming out of some of Europe's emerging markets that interests me more. While much of developed Europe is still struggling to get its fiscal house in order, much of emerging Europe already has. Some of the emerging markets in Europe deserve to be a greater part of the European story, and in my view, can offer compelling investment opportunities at attractive valuations.
Is Now the Time to Take Stock in Europe?
Being a value manager in the equity space this year hasn't been an easy job. When investors are focused on capital preservation and risk is said to be "off" the table, the value proposition can certainly require some conviction. Templeton Equity Group CIO Norm Boersma knows that when certain sectors are out of favor, that's often when the best opportunities surface. To position for a time when risk is back "on," he is embracing the low market valuations present in Europe and elsewhere.
Viva Reforma en Mxico
Elections come and go, but the real test of a candidate might be whether the promises made on the campaign trail are actually put into place. Enrique Pea Nieto and his Institutional Revolutionary Party (PRI) emerged victorious in Mexico's July 1 presidential election on the promise of reform and the end to old, "undemocratic" ways.
Investing in Innovation
When you think about the rise of the technology sector, the dot.com boom of the 1990sand its dramatic bustprobably comes to mind. Matthew Moberg, portfolio manager for the Franklin DynaTech Fund, sees investing in the technology sector as more than just jumping on the latest fad. He looks for innovative companies that have long-term potential for growth, even if they are not what spring to mind when thinking about technology.
Municipal Bonds: Putting Things in Perspective
It's easy to jump to conclusions based on shocking headlines and dire predictions. If that's all you read, you'd probably be walking around with a stiff neck from looking up, waiting for the sky to fall. Beneath the sensational headlines often lies a more mundane story. This could be the case with the current bout of muni-bond default mania, which harkens back to the muni-market panic in December 2010.
China's Growing Pains
Many feel that China is the engine for the world economy and that if it slows down, we may be doomed to a recession or even a depression. Yes, China's growth is decelerating from the double-digits of recent years; various forecasters are predicting a possible GDP growth range of 7-8% this year. However, I think it's important to emphasize that would still represent an impressive pace, and remember that China isn't the world economy's only locomotive.
An Attractive Destination for Holidays, and IPOs
Many Western investors would likely have little trouble naming this years biggest initial public offering in the U.S., but they probably dont know that two of the top three global IPOs so far this year have been in an island nation probably better known as a holiday destination than an investment one. That country is Malaysia, where an interesting story has been unfolding in the IPO market.
No Armageddon, but Consequences
In a time of severe stress and crisis, its easy to come to the conclusion that Armageddon is upon us. Those who believe the European Union is going to split up and Chinas growth will come to a screeching halt are probably building bunkers and sharpening their survival skills right about now. Hasenstab isnt in panic mode. In fact, hes optimistic the eurozone will survive, and that no, China wont move back into the feudal age.
Readers Questions Answered
People who follow me know that one of my favorite things to do to really get to know a city is to walk or cycle the streets and interact with the locals. The great questions you readers submit are kind of like a digital version of that experience, providing me with invaluable perspectives and ideas from around the world. Thank you! Please read on for my answers to a few of your recent questions.
The View From the Fiscal Cliff
Six months into 2012, investors whose New Years resolutions included a vow to hold strong through market dismay may be finding that the eurozone crisis and slowing global growth are testing their resolve. As we move into the second half of the year, sluggish growth and continued market uncertainty seem likely to be ongoing scenarios for the U.S., as the nation faces a fall presidential election and teeters on the edge of a precarious-sounding fiscal cliff.
China Fueling Auto Sales
The picture postcard image many western travelers may have of Chinas city streets is one besieged with bicycles and empty of cars, but China is no longer pedaling its way into the futureits firmly in the drivers seat as autos rapidly replace human-powered transit. Motor vehicle sales have been booming in China, a reflection of the growing middle class. In 2009, car sales in China exceeded those in the United States, and in 2011, China led world auto production at 18.4 million units.
Long-Term Investing in a Short-Term World
In this electronic age, news and rumors can spread like wildfire across the globe, heightening market volatility as markets react in real time. It can be difficult for investors to see the forest for the trees as they try to dodge the downdrafts immediately in front of them, sometimes making hasty missteps.
Abandon the Panic, Not the Eurozone
I truly believe it pays to be an optimist in life. As a long-term investor, its practically part of the job description. You can fearfully view a crisis as a time of loss and peril, or you can choose to view it as a time of opportunity with potential for positive change. The Eurozone crisis has triggered a ripple effect across global markets, and many investors are expressing pessimism about the economic health and sustainability of the region. Me? Im an optimist.
The R Word in Emerging Markets
No matter what decision we face in our lives, there is always some type of risk involved. But when you take a few risks, the experience can often be quite rewarding. When it comes to investing, some risks are present no matter what market youre in. Its also true that there are risks that are especially important to consider when it comes to the emerging markets.
Is the World on Sale?
Like a swift kick to the gut, the eurozone crisis knocked the wind out of the stock market in May. While most investors duck and run, others see market stumbles as opportunities to pick up potential long-term values. For these contrarians, they see the world on sale. Peter Langerman, Chairman, President and CEO of Mutual Series and co-manager of Mutual Shares and Mutual Global Discovery funds, and Christian Correa, Director of Research for Mutual Series and co-manager of Mutual Beacon and Mutual Recovery funds, are in the latter group.
The Pitfalls of Protectionism
Free, fair and open trade is essential to fostering a thriving global economy. In the past, when economic conditions have deteriorated, weve seen governments in developed and emerging economies alike engage in protectionist policies. With growth in many countries slowing this year (tied in part to the crisis in the Eurozone), Im concerned that protectionism could be on rise. In the end, I believe these policies dont really protect anyone.
Real Challenges in Brazil
Brazil, the B in the emerging markets entities known as the BRIC countries (Brazil, Russia, India, China), has entered what I think can fairly be described as a rough patch of sluggish growth. Since my last update on Brazil, the country has experienced heightened economic challenges that threaten its competitive position to slip. In 2011, Brazils growth eased to 2.7% after having reached 7.5% in 2010.1 The Eurozone crisis and the impact of a stronger Real on the competitiveness of Brazilian industry are partially to blame for this growth slowdown.
Hasenstab on a Possible Grexit
The Greek debt drama looks to be entering its final act. On June 17, Greek citizens will cast their votes to either elect a pro-austerity government that would keep the economically eviscerated country in the eurozone, or leave the union and go it alone. Dr. Michael Hasenstab expects either option is going to be painful for Greece, so the big question in his mind is whether the world is prepared for either outcome. A summary of some of Dr. Hasenstabs thoughts on what Greeces next move may mean for investors.
The Sense and Sensibility of Global Investors
The worlds financial markets are like a spiders web; inter-linked and highly connected, strong and flexible, but sometimes fragile, too. The global financial markets have gone through rapid change in the last ten years. Large, emerging economies such as China and India have increased their contribution to global GDP and become true global powers1, causing individuals perceptions of the global economy to shift, as well. Perception has the tendency to impact market reality, which is why I was intrigued to see the results of our 2012 Global Investor Sentiment Survey.
Hopes, Dreams and College Savings Solutions
Its one of those universal truths that from the day their babies are born parents are filled with hopes, dreams and fears for their children. Those hopes and dreams typically include a successful career which often starts with a college education. The thought of a college education can lead to one of parents biggest fearsnot being able to foot the bill. Given the rising cost of college, financing a four-year degree for one or more children can be a daunting prospect for parents juggling day-to-day living expenses while trying to save for other investment goals like their own retirement too.
Searching for European Solutions, and Dividends
As the European debt crisis rages on, people in the eurozone are voicing their opinions about austerity measures, bailouts and such, not just on the streets, but also at the polls. As the winds of political change swirl, the future of the eurozone seems to hang in the balance. Tucker Scott, portfolio manager of Templeton Foreign Fund, and a vocal fan of a thorough vetting process, says hes focusing on long-term outlooks, not just todays headlines. And, hes finding select European stocks with dividend-growth potentialin some cases even better opportunities than in the U.S.
Reform in India: A Work in Progress
The global investment community has been up in arms (and rightly so) about the Indian governments attempt to address possible past tax evasion through retroactive tax measures. Many investors started to express their disapproval by withdrawing their dollars, and amid the pressure, the Indian Finance Ministry decided to hold off on enacting the general anti-avoidance rule (GAAR) for a year. I believe this is a step in a positive direction, although the debate has simply been delayed and not completely resolved. And, retroactive capital gains taxes are still on the table.
Africa: Investing in the Cradle of Civilization, Part 3: Ghanas Golden Opportunties
This year could prove an interesting one for Africas west coastal country, Ghana. Presidential and parliamentary elections are slated to be held by year-end, the results of which are almost sure to impact the shape of the countrys future. President John Atta Mills has stated in the press that he will take all necessary constitutional steps to ensure the conduct of free, fair and transparent elections. Im encouraged by the economys 14% growth in 2011 (thats faster than China!), and would be pleased to see evidence of more positive momentum.
A Taylor-ed View of Dividends
The baby boomer generation, people born in the U.S. from 1946 19601, numbers some 78 million and is now moving into retirement. Taylor challenges this group in particular to think differently about their investments given the current economic climate. We are currently in a low-growth, very low interest rate environment and I really dont think thats going to change too much anytime soon. Dividends and dividend yield in the equity market matter a lot more than they did before..."
A Mixed Fixed Landscape
The lingering low-rate environment in the U.S, Eurozone, Japan and some other nations has many yield-seeking investors feeling stuck in the mud. At its April policy meeting, the Federal Reserve pledged to keep its key short-term interest rate exceptionally low at least through late 2014. Some other global central banks, even in emerging nations, have pushed their rates lower too this year to spur growth. On top of that, many countries are also still trying to dig out of debt, but seem to be spinning their wheels.
Africa: Investing in the Cradle of Civilization: Part 2
Africa is well known for its wealth of natural resources. These riches have attracted global investors, most notably from emerging market countries such as China, India and Brazil. Many of these investors have been seeking raw materials for their own economic development and markets for their industries. In return, many African countries have been receiving vitally needed infrastructure such as transport links, power stations, schools and hospitals, which brings into play another great African resource: a huge and youthful population.
Africa: Investing in the Cradle of Civilization: Part 1
Africa is widely regarded as the cradle of civilization. Building on its storied history as the bedrock for humankind, Africa is also a continent of ample investment opportunity, provided you have the resolve to be in it for the long haul. My team and I look at Africa as two parts: (1) sub-Saharan Africa where South Africa and Nigeria dominate and (2) the North African markets, where Egypt is the largest. Of course the South African market is much larger and more developed than the other markets in sub-Saharan Africa.
Chinas Landing Pattern
Our main investment themes in general have been focused on consumers and commodities. It is our belief that Chinese consumers are likely to continue gaining clout, and Chinese macroeconomic policy has increasingly been moving from an export-based model to one fueled by domestic demand. We also expect that demand for hard and soft commodities should remain strong as China and many other emerging markets industrialize, gain wealth and increase spending on infrastructure, which tends to tilt the balance between supply and demand in favor of producers.
Myanmar: Opening the Door to Democracy
As I have always maintained that with opportunities come risks. Myanmar is no exception. At this moment there is a lot of euphoria and excitement about the possibilities, but investors should try to avoid getting caught up in emotion. Its important to realize that the development of capital markets (bonds and stocks) takes time. One should be cautious about potential over-speculation, which tends to run high in the early stages of development. Investors often try to rush in early and can potentially push the price of stocks too high, which can in turn make valuations expensive.
Readers Questions Answered Part IX
I agree with your outlook on the emerging economies. My concern is the Eurozone, where there is political and currency instability. There is talk that one or more countries may leave the Eurozone. This could be a shock to the financial world, affecting currencies, and banks with exposure may tumble. How would you assess this risk? I believe the Europeans are on the right track and are addressing the fiscal issues facing not only Greece, but other countries in the Eurozone. Ultimately, these are issues impacting all developed countries, includng the U.S. and Japan.
Following the (Dividend) Yield Signs
Flush with cash on their balance sheets, many U.S. companies have increasingly been rewarding shareholders in the form of dividends over the past year. Thats good news to the many investors who have sought out dividend-paying stocks for potential relief in todays yield-scarce environment. Alan Muschott, is a vocal fan of not just dividends, but growing dividends. In a recent interview he shared his views on the dividend, including technophile-favorite Apples announcement that it plans to declare a dividend for the first time in more than two decades. Read on to see what he had to say.
Balancing Perception, Reality, Equities and Fixed Income
Never underestimate the power of perception to influence peoples fiscal behavior. Perception is such a significant influence, in fact, that economic tea-leaf readers have developed a myriad of surveys and indicators to monitor individuals perceptions of the investing environment because perceptions canand domove markets. When sentiment is negative, investors tend to shift out of assets they perceive as risky and into assets they perceive as safe. Ed Perks, portfolio manager of Franklin Balanced Fund and Franklin Income Fund, is well aware of the role perception plays in the markets.
Emerging Market Brands: From Backstage to Center Stage
If the growth of the emerging market consumer class persists, it should translate into more clout for local consumer brands. The global emerging markets middle class is anticipated to grow from 430 million in 2000 to 1.2 billion by 2030.3 By some estimates, China and India are expected to account for two-thirds of the expansion in emerging markets.2 Its not a given, but such a large group of people with diverse tastes in consumer goods could be a boon to emerging brands over the long term.
Municipal Bonds: What a Difference a Year Makes
Nows an exciting time for investors to consider this asset class, which is on firmer footing today. In brief: We believe the fear and dire predictions about municipal bonds last year were largely unfounded and misguided. We think the municipal bond market is now trading on strong fundamentals. Fiscal constraints remain in the marketplace; we need to be disciplined and responsible in our investing. In our opinion, its nonsensical to compare the U.S. municipal marketplace to sovereign-debt countries. We are staying more defensive; we think its the most prudent course of action.
A Balancing Act
The balancing act between inflation and growth that economies often face is perhaps even more pronounced in the emerging markets world: stimulate growth too much, and inflation could flare, but stamp out inflation too hard, and growth could freeze. The fire of inflation seems to have moderated and some central banks have taken actions to stimulate growth. I believe the fundamentals in many emerging markets look supportive of these actionsas long as it doesnt tip out of balance. Inflation is a big challenge, and I believe it will probably be a very important consideration going forward.
Drilling Into Fuel Prices
Gasoline, deodorant, dishwashing, liquid, eye glasses, crayons.What does this list of seemingly random items have in common? They are all made from refined crude oil.1 So even if you dont feel pain at the gas pump, you probably rely on more products made with or from crude oil than youd think. And of course even non-oil based products are generally shipped via fuel-consuming transport vehicles, so youre bound to feel the pinch in the form of fuel surcharges or price hikes sooner or later.
Singapore Gateway to Southeast Asia
Viewing the region from the now 20-year old seat of our Singapore office, what we see in Southeast Asia is a generally favorable combination of rising per-capita incomes and a relatively young population, a recipe with the potential to fuel the appetite for a wide variety of consumer goods. The challenges Southeast Asian markets face must not be easily dismissed, but overall I am optimistic about the regions long-term growth potential.
Results 1,101–1,150
of 1,239 found.
