This Isn’t the Way Stock Market Cycles Typically End
European equities are the great unloved asset class. But Dylan Ball, head of European Equity Strategies, Templeton Global Equity Group, thinks that status means there should be some opportunities to be found for long-term investors.
Volatile Markets: Are High-Frequency Traders to Blame?
Our Head of Equities, Stephen Dover, takes a look at what’s driving growth in high-frequency trading. He also explains why the algorithms behind the trading can lead to bouts of increased market volatility that may create opportunities for long-term investors.
Three Technology Titans Reshaping Retail
Powerful retailing disruptors are reshaping expectations about shopping and shipping by digitizing retail markets across the globe. New conveniences such as ordering groceries with a simple voice command are upending the old-world order.
On My Mind: The Fed Will Hike Again—Because It Can
While the financial markets seem to be betting on a very extended pause in the US Federal Reserve’s multiyear tightening cycle, Franklin Templeton Fixed Income Group Chief Investment Officer Sonal Desai has another idea. Here, she makes the case that interest-rate hikes may still be on the table this year.
The Real Risk in Today's Global Markets
While some observers might worry that the current global economic cycle is ending, Templeton Global Macro CIO Michael Hasenstab characterizes the slowing growth we are experiencing as a cyclical slowdown, not the end of the cycle. He is more concerned with the political vulnerabilities he's seeing in the global economy today, and says the world's increasing fragmentation due to populist policies is a major concern.
Three Reasons to Embrace Emerging Market Corporate Credit
Robert Nelson, a portfolio manager with Franklin Templeton Fixed Income Group, believes emerging market corporate debt presents a compelling but under-appreciated investment story. Here he sets out three reasons why investors might consider an allocation to the asset class.
Surveying the Investment World through an ESG Lens: A Snapshot of Key Topics from the US
Environmental, social and governance (ESG) topics have never been more prominent in investors’ minds than they are today. But there’s considerable variation among investment managers about how ESG is considered or integrated.
The Impact of US Policy on Emerging Markets: Three Investor Misconceptions
As investors continue to grapple with market jitters brought on by months of US-China trade tensions and other market uncertainties, Franklin Templeton Emerging Markets Equity’s Chetan Sehgal explains why the recent volatility could present opportunities in the medium to long term.
US Government Shutdown Paused for Now: Assessing the Economic Impact
The longest-ever US government shutdown has finally ended—at least temporarily—while negotiations continue over funding of a US-Mexico border wall. While the government will be reopened at least until February 15, the economic implications of the shutdown and the potential for more disruption ahead has become a source of concern to many global investors.
US Government Shutdown: Assessing the Impact
The longest-ever US government shutdown has finally ended, at least temporarily, while negotiations continue over funding of a US-Mexico border wall. While the government will be reopened at least until February 15, the economic implications of the shutdown and the potential for more disruption ahead has become a source of concern to many global investors.
What Really Stood Out at the 2019 US Consumer Electronics Show
When we attend the US Consumer Electronics Show (CES) each year in Las Vegas, our goal is to avoid the marketing hype surrounding certain products. Instead, we look for the latest technologies we think are really going to make a difference, some of which may not generate media buzz.
Putting Equity-Market Turbulence into Context
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.
Why We Think Most “Brexit Panaceas” Are Ill-Thought-Through or Unviable
As expected, Theresa May and her government survived the no-confidence vote called by the opposition Labour Party after the UK Parliament overwhelmingly rejected her withdrawal deal. Now UK political attention must turn back to the real job at hand—navigating the United Kingdom’s exit from the European Union.
Emerging Markets Outpace Developed Markets in the Final Quarter of 2018
Numerous uncertainties weighed on investor sentiment in 2018 and led to a down year for emerging markets overall, although the fourth quarter saw some outperformance versus developed markets.
Mapping the Influence of AI and Machine Learning
The evolution of artificial intelligence (AI) has rarely been far from the headlines in recent years. Its influence now reaches into nearly every sector and geography and holds economic and political ramifications that many experts say are on par with the start of the Industrial Revolution in the 18th Century.
Is it Time for Small-Cap Stocks Overseas to Shine?
As global markets increasingly ponder how long US economic growth can continue, Franklin Equity Group’s Ed Lugo says he’s looking for potential investment opportunities outside the United States. He explains why he sees opportunities in Europe and Asia, despite concerns about Brexit negotiations and a slowing Chinese economy.
What Will a Government Shutdown Mean for Investors?
US members of Congress are finding themselves at a stand-off over the creation of a border wall between the United States and Mexico. President Trump’s threats to shut down the government if the bill is not passed raise questions and uncertainty that will contribute to increased political risks for investors to consider. Stephen Dover, Head of Equities for Franklin Templeton Investments, shares his perspective about the potential impacts.
The Impact of US Policy on Emerging Markets—Dollar Concerns “Overdone”
Continued US dollar strength has focused attention on weaker commodity prices and dented investor enthusiasm for emerging markets in recent months—stoking fears that the current climate could lead to a repeat of the 1997-1998 Asian Financial Crisis.
Risk On, Risk Off, or Risk Uncertain?
While big market swings can be unsettling to many investors, there are a number of alternative investment strategies that aim to turn volatility into opportunity, according to K2 Advisors’ Brooks Ritchey and Robert Christian.
Does a Brexit Resolution Require a New Referendum or a General Election?
Political infighting abounds in the United Kingdom as the clock ticks relentlessly towards the March 29 Brexit date. Amid entrenched positions on all sides, Sandy Nairn, Chairman of Templeton Global Equity Group and CEO of Edinburgh Partners, argues that only a fresh referendum or a general election can break the Brexit deadlock and examines some of the implications for investors.
Changes in Technology, Regulation and Accessibility Drive Rise in Use of Collective Investment Trust
Collective Investment Trusts (CITs) have been gaining momentum in the retirement space, and for good reason. Jason Colarossi, vice president, national retirement strategist, of Franklin Templeton’s Defined Contribution Division, outlines what CITs are and how they have evolved.
An Integrated Approach to Managing ESG Risks and Opportunities
Information, data and research are the fuel for investment decisions. Over the years, as new information has emerged and evolved, investors have found innovative means to harness new insights to help inform their decisions.
Why Some Investors Are Looking Again at Gold
For some investors, increasing exposure to gold has been a knee-jerk reaction to bouts of heightened financial market volatility. Franklin Equity Group's Steve Land says there's more to gold than that. And he explains why he's positive about both the prospects for gold and for gold equities.
The Glistening Project: Why Some Investors Are Looking Again at Gold
For some investors, increasing exposure to gold has been a knee-jerk reaction to bouts of heightened financial market volatility. Franklin Equity Group’s Steve Land says there’s more to gold than that. And he explains why he’s positive about both the prospects for gold and for gold equities.
The Gift that Keeps on Giving
The holiday season is approaching, and with it, the busiest time of the year for shoppers as they search for the perfect gifts for their loved ones. But instead of purchasing the latest toy or electronic gadget for your children or grandchildren, what about giving them the gift of a more secure future?
October Market Recap and Outlook: A Sea of Opportunities
Emerging markets continued to struggle in October amid an environment of heightened equity-market volatility globally. Manraj Sekhon, CIO of Franklin Templeton Emerging Markets Equity, and Chetan Sehgal, senior managing director and director of portfolio management, believe the pullback presents long-term investors with opportunities amid what they dub an overreaction. They present the team’s overview of the emerging-markets universe in October.
Theresa May’s Brexit Steeplechase Has Only Just Begun: an Investor’s Perspective
UK Prime Minister Theresa May has cleared the first hurdle in her bid to secure a soft Brexit. Her Cabinet has backed the withdrawal deal UK and European Union negotiators have agreed to. But David Zahn, Franklin Templeton’s head of European Fixed Income, warns her most difficult challenge lies ahead.
Finding Value among Stretched US Valuations, Market Dislocations
In recent years, US market strength has lifted markets globally, despite recent bouts of market volatility. According to Templeton Global Equity Group, that US market strength has led to a widening valuation gap between US and global equities.
Assessing a Divided Congress and Market Fundamentals
Tuesday’s US midterm elections shifted US Congress to split control. Yet, Franklin Templeton Multi-Asset Solutions CIO Ed Perks says this expected alteration in the balance of power is unlikely to change his US economic outlook or lead to major changes in US policy. He also explains why he looks at multiple fundamental factors when assessing markets, rather than political outcomes alone.
Change is Coming to the Retirement Landscape
In recent months, there has been heightened activity in Washington DC in the area of retirement policy, with plans and proposals that could meaningfully alter the landscape. Drew Carrington, head of Institutional Defined Contribution at Franklin Templeton Investments, and Michael Doshier, vice president, Retirement Marketing, discuss the latest legislative developments and ideas.
The Race to Harness AI Technology in Asia
Artificial intelligence (AI) and automation present enormous investment opportunities, some in ways we don’t even know yet. As the world adapts to technological advances, Franklin Templeton Emerging Markets Equity’s Sukumar Rajah and Eric Mok think some promising developments in Asia could dictate the pace of change in the burgeoning AI market.
Renewable Energy Gaining Steam
Renewable energy has been gaining steam for many reasons, as have the investment opportunities in the space. Ketul Sakhpara, portfolio manager and research analyst, Franklin Real Asset Advisors, outlines the three main drivers of interest, and where his team sees potential.
Fourth Quarter Hedge-Fund Strategy Outlook: K2 Advisors
In their fourth-quarter (Q4) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams take a deeper look at alpha, and why they feel it’s misunderstood. They believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.
A Few Words on Equity-Market Volatility
October has lived up to its reputation as a volatile month as concerns about rising US interest rates, slowing growth in China and upcoming US midterm elections have spooked many investors. Franklin Equity Group offers a few words on the recent turmoil, why volatility can unlock compelling opportunities and why the investment team still sees a compelling case for technology companies.
A Global Macro Perspective: Populism, Trade and Emerging-Market Volatility
Templeton Global Macro Chief Investment Officer Dr. Michael Hasenstab and Vice President and Deputy Director of Research, Dr. Calvin Ho, discuss emerging-market turbulence, the persistent concerns around trade policy and divergent growth trends in the developed world.
Social Security Giveth and Medicare Taketh Away
Retirees got some good news from the US Social Security Administration, as it recently announced a 2.8% bump in benefits in 2019, the largest increase in seven years. Unfortunately, the good news also came with some bad news—higher Medicare premiums that could offset those gains.
Global Economic Perspective: October
The current widespread optimism about the US economy is largely justified, in our view, by its strong fundamentals, particularly the positive backdrop for consumers. Despite the economy’s robust growth, we do not view the recent rise in US Treasury yields as heralding the start of a major selloff across bond markets.