Beyond Bulls & Bears

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Perspectives

Will the Roar of Market Tensions Tame Global Growth?

The first quarter of 2018 started out like a lamb but went out like a lion as long-dormant volatility began to roar. Issues like inflation fears, trade tensions and geopolitical risks contributed to market turbulence, leaving many investors wondering whether these issues will put a damper on global growth—and end the US market’s nine-year bull run. Three of Franklin Templeton’s senior investment leaders—Stephen Dover, Christopher Molumphy and Ed Perks—weigh in.

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Perspectives

The Disruption of Money

While speculators have been flocking to virtual currencies with intense fervor, professional investors have largely taken a more cautious approach. Roger Bayston, senior vice president, Franklin Templeton Fixed Income Group; Austin Trombley, vice president and data scientist, Franklin Templeton Fixed Income Group; and Anthony Hardy, research analyst with Franklin Equity Group, recently took part in a panel discussion on the topic. They discuss how digital currencies work, how blockchain technology has the potential to impact many facets of our lives, and how they feel about the investment case for this rapidly changing space.

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Equity

Will 2018 be a Banner Year for US Bank Stocks?

“In our view, select large-capitalization US banks are likely to benefit from a growing US economy, higher interest rates and a less-restrictive regulatory environment. As a result, we think they have room to increase dividends and stock buybacks as earnings improve and capital is freed up.” – Matt Quinlan, Franklin Equity Group

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Equity

Why Tech-Sector Volatility Doesn’t Worry Us

While a few companies in the US technology space have been in the hot seat lately, Jonathan Curtis, vice president and research analyst with Franklin Equity Group, is largely unfazed. He said temporary “blips” affecting certain stocks are par for the course as consumers get used to new technologies—and how they impact our lives. He sees the overall long-term fundamental backdrop for the sector as sound.

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Equity

Symmetry Policy: How to Adapt to a More Volatile Market Environment

“Unusually subdued levels of volatility during 2017 possibly lured some investors into a false sense of security. But as precipitous market moves in early February and late March suggested a return to more historically normal levels of volatility, the question for investors now is how to adapt their approach to the new environment.” Dylan Ball, Templeton Global Equity Group

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Multi-Asset

How Safe Is NAFTA?

“With trade skirmishes opening up on multiple fronts, we think the United States may feel increased pressure to get a NAFTA deal done ahead of this summer. That’s when the Mexican presidential election and US mid-term election campaigning will be in full swing. Otherwise, the United States risks attempting to win a trade war on multiple fronts, which tends to end badly if history is any guide.” – Stephen Lingard, Franklin Templeton Multi-Asset Solutions

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Equity

Why There’s Never Been a Better Time to Invest in Innovation

“Now, more than ever, we see innovation as the main driving force behind value creation in the global economy. As growth-oriented investors, we believe one must invest in innovation across industries to have the potential to outperform the market.” – Matthew Moberg, Franklin Equity Group

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Perspectives

Artificial Intelligence: Real Influence

Franklin Templeton's investment leaders weigh in on why new technologies can influence more than just a single industry or sector.

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Equity

Can Anything Throw the Nine-Year-Old Bull Off its Stride?

On March 9, the US equity bull market turned nine. After such a long run, many investors may now be wondering, what could cause an equity market downturn?

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Equity

Growth and Value Investing: A Complementary Approach

Growth and value investing are often seen as competing styles, with one outperforming or underperforming the other during different periods of time and market cycles. While the approaches may differ, Stephen Dover, head of equities at Franklin Templeton Investments, and Norm Boersma, chief investment officer of Templeton Global Equity Group, say growth versus value doesn’t have to be an either-or proposition.

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Alternatives

How Infrastructure Companies Could Rebuild the World

“Given these budget constraints at the local, state and federal levels, we think the private sector will likely play a crucial role in funding Trump’s infrastructure plan. In our view, listed infrastructure companies, such as airport, toll road and water-treatment operators, are likely to provide both their capital and their operational expertise.” – Wilson Magee, Franklin Real Asset Advisors

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Equity

Why US Tax Reform Could Drive Dividends Higher

“Our research suggests that companies that grow their dividends tend to experience greater long-term stock price appreciation than companies that maintain their dividends or don’t pay one at all. And we have found that a consistently rising dividend tends to be an indicator of solid earnings growth, a resilient business model and a commitment by management to return cash to shareholders.” – Don Taylor, Franklin Equity Group