Beyond Bulls & Bears

Slowdown Doesn’t Mean Stop. Our View on US Interest Rates, Inflation and China
Fixed Income

Slowdown Doesn’t Mean Stop. Our View on US Interest Rates, Inflation and China

While the US Federal Reserve (Fed) decided to leave interest rates unchanged at its January policy meeting, the market seems to be thinking the Fed may press pause for an extended period. A prolonged US government shutdown has heightened concerns the economy could be at a tipping point, but Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income Group, weighs in on why the notion the Fed won’t raise rates at all this year “is misguided.”

Putting Equity-Market Turbulence into Context
Multi-Asset

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, according to Ed Perks, CIO, Franklin Templeton Multi-Asset Solutions. And, he notes investors had become so used to low levels of volatility that 2018 actually marked a return to “normal levels.”

PODCAST: Making Sense of Recent Market Action
Perspectives

PODCAST: Making Sense of Recent Market Action

After a turbulent end to 2018, early January brought some relief for equity investors, but there certainly are no shortage of uncertainties about the year ahead. Three of our senior investment leaders recently participated in panel discussion about what they see affecting investor sentiment, how they think changes in monetary policy are influencing market action and why they don’t see a US recession this year.  

What We Think is Causing Recent Equity Market Volatility
Equity

What We Think is Causing Recent Equity Market Volatility

In the past few months, equity investors have had to cope with something they hadn’t experienced for a while—volatility. While the ups and downs can be unsettling, volatility can also create opportunities for long-term investors. Stephen Dover, our head of Equities, takes a look at where he sees them emerging and breaks down the root causes of the recent market turmoil.

Distortion, Divergence and Diversification: 2019 Global Investment Outlook
Perspectives

Distortion, Divergence and Diversification: 2019 Global Investment Outlook

Volatility has plagued equity markets globally in 2018—most notably emerging markets and US equity markets. As the US economic expansion officially crossed the nine-year mark in 2018, many investors started to wonder when the cycle would change—and what the catalyst might be. Our senior investment leaders see plenty of reasons to be optimistic about the year ahead, but recognize investment opportunities may be more divergent, with some previously overlooked countries or asset classes potentially taking the spotlight.

The Case for Municipal Bonds in a Rising-Rate Environment
Fixed Income

The Case for Municipal Bonds in a Rising-Rate Environment

Municipal bond yields moved higher in 2018 and seem likely to continue moving up in 2019 if market expectations for further interest-rate increases play out. Sheila Amoroso, director of Franklin Templeton Fixed Income Group’s Municipal Bond Department, makes a case for munis within a rising-rate environment. She says there could actually be more demand for munis ahead as a source of tax-free income.

A Few Words on Equity-Market Volatility
Equity

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.

Global Economic Perspective: October
Fixed Income

Global Economic Perspective: October

In this month’s Global Economic Perspective, our Fixed Income Group discusses whether optimism about the US economy is justified, and whether Italy’s budget talks could lead to looser fiscal policy elsewhere in the eurozone.

Global Investment Outlook: How Much Further Can Global Growth Fly?
Perspectives

Global Investment Outlook: How Much Further Can Global Growth Fly?

Templeton Global Macro CIO Michael Hasenstab, Franklin Templeton Fixed Income Group CIO Chris Molumphy and Franklin Templeton's Head of Equities Stephen Dover weigh in on whether synchronized global growth can continue, why worries about trade wars may be overblown and why opportunities for investors may be more idiosyncratic or divergent moving forward.

Global Economic Perspective: September
Fixed Income

Global Economic Perspective: September

In this month’s Global Economic Perspective, our Fixed Income Group discusses the spread of populism in Sweden, whether US economic momentum appears sustainable and what’s behind recent emerging-market woes.

Global Economic Perspective: August
Fixed Income

Global Economic Perspective: August

“We think the ECB is wise to retain some flexibility over the timing of its transition to more conventional monetary policies. The central bank has voiced concerns over the impact of the Turkish crisis on some European lenders. Additionally, volatility can be exaggerated at this time of year.” – Franklin Templeton Fixed Income Group®

Third Quarter Hedge-Fund Strategy Outlook: K2 Advisors
Alternatives

Third Quarter Hedge-Fund Strategy Outlook: K2 Advisors

“While things remain relatively tranquil on the surface, macroeconomic concerns―including geopolitical hot spots, growing political uncertainty in Europe, trade wars and major central bank policy divergence—all pose legitimate problems for market stability. In addition, perhaps one the most overlooked concerns today is the threat of continued rising interest rates in the United States.” - K2 Advisors, July 26, 2018.