Jerry Palmieri, Vice President and Sr. Portfolio Manager for Franklin Equity Group®, doesn’t worry too much about whether the Greek drama dominating daily headlines will turn into global market tragedy. A veteran of Franklin Templeton since 1965, he’s survived to tell the tale after more than four decades of market ups and downs. His wizened view summarized:
- Market ups and downs are to be expected.
- U.S. market, economy will survive the Greek debt crisis. ”Things will work out.”
- Market timing not the ticket to long-term investing success. Read more…
Value, like beauty, is in the eye of the beholder. One man’s splurge is another man’s thrift. So how do you define value? And where do you find it? Alan Chua, portfolio manager with the Templeton Global Equity Group and known value-hunter, has been spanning the globe to uncover it. You might be surprised to learn that the much-maligned eurozone, embroiled in an ongoing debt crisis, also happens to be a place he feels attractive valuations are ripe for the plucking. Top takeaways:
- Chua sees “attractive opportunities” in the eurozone, based on valuations
- Sectors to watch: pharmaceuticals and technology
- Opportunities in Asia
- Chua remains cautious on the U.S., as valuations there are not as cheap as Europe, but there are promising signs Read more…
Dr. Michael Hasenstab
Some market-watchers believe that markets have been dominated by fear, inspiring investors to panic and liquidate investments that are otherwise fundamentally sound. They throw out the baby with the bathwater, so to speak. Dr. Michael Hasenstab, Portfolio Manager of the Templeton Global Bond Fund, doesn’t scare so easily, though. As he reiterated recently, he actually sees times of market panic as opportunities to make investments where he sees long-term value. The key thoughts he shared:
- The challenge during periods of volatility is that, although investors can take a short-term hit, this volatility can create opportunity.
- Fears Europe will sink Asia appear “overblown.” China not likely to see a “hard landing.”
- The Eurozone drama continues to unfold.
Every now and again we get the opportunity for a personal chat with one of the portfolio managers here. The opportunity recently arose again, this time with Bill Lippman: a Bronx native, tennis fanatic, and, by the way, CIO for the US Value, Franklin Equity Group. With 60-odd years in the business, the always charismatic Mr. Lippman certainly can share some memorable stories. Read on…
On How He Got Into Asset Management
As a young man out of college, I was running a sales organization. It had nothing to do with the financial services industry, although I did graduate with an MBA that focused on finance. These were tough times back then, and one of our best salesmen made an incredible commission that year – this was amazing – $30,000. Can you imagine such a huge amount?
He quit that year, and I called him back in and I said: “I’m just curious. You made $30,000 here this year, which was outstanding. Everyone else made $15,000 if they were lucky. Where are you going?” He said, “I’m going to work for a mutual fund organization.” I said, “You really think you’re going to make more money there than here?” He said, “Yes!”
- Chris Molumphy: “The labor markets certainly aren’t in great condition, but the trends seem, in our view, to be positive.”
- Roger Bayston: “We do not expect any meaningful policy changes regarding the future of Fannie and Freddie until after the U.S. Presidential election this fall.”
- Michael Hasenstab: “It is absolutely essential that a number of these European policy measures that were started are followed through on.”
- Eric Takaha: “We have been viewing the financial market gyrations over the past year as longer-term investment opportunities.”
- Rafael Costas: “By now everybody knows that 2011 was, in the minds of many, a surprisingly strong year for municipal bonds, but it was, however, a pretty uneven year.”
The idea behind fixed income is to have a predictable amount of money coming in at predictable intervals. Against a market backdrop that’s only predictable in its unpredicatability, the promise of a steady income probably sounds pretty alluring to a lot of investors right now. So, as we emerge from a very volatile 2011 and wade into what may well be a similarly volatile 2012 how’s the fixed income space sitting? Great question! We’re glad you asked.