Beyond Bulls & Bears

Why We’re Positive About Lagarde’s ECB Nomination
Fixed Income

Why We’re Positive About Lagarde’s ECB Nomination

Christine Lagarde may have emerged as a surprise candidate to take the helm of the European Central Bank (ECB), but David Zahn, our Head of European Fixed Income, sees it as a positive choice. Here he explains why both her experience, and lack of it, could prove positive if she does secure the job. And he shares his conviction that, whoever is in charge, the ECB is likely to remain steadfast on its easing path.

PODCAST: Midyear Outlook: Reining in Risk
Perspectives

PODCAST: Midyear Outlook: Reining in Risk

Equity markets continued to march higher in the first half of 2019, despite trade uncertainties and recessionary fears. An abrupt change to a more dovish stance among central bankers has recently provided fresh tinder to the equity fire. But does a looser policy stance signal there are cracks in the global economy’s foundation? Our senior investment leaders share their views on investing in uncertain times and how their outlooks have changed from earlier this year. They weigh in on market divergence, whether there is simply too much focus on the US Federal Reserve, where they see pockets of opportunity and how they are looking to play defense.

Are Investors Today Too Complacent?
Fixed Income

Are Investors Today Too Complacent?

Templeton Global Macro CIO Michael Hasenstab recently shared his perspective on investing at FundForum International 2019 in Copenhagen. He outlines why he thinks many investors are too complacent today, leading to some “dangerous” risk-taking. He also cautions why he thinks the next decade won’t be like the last for investors.

US Fed in Tough Spot as Market Clamors for Rate Cuts
Fixed Income

US Fed in Tough Spot as Market Clamors for Rate Cuts

The US Federal Reserve kept interest rates steady at its June meeting; it emphasized its data-driven approach to policy decisions but noted it believes the case for lower interest rates to be strengthening. Franklin Templeton Fixed Income CIO Sonal Desai offers her take on the meeting, and why the Fed might actually be exacerbating market volatility ahead.

PODCAST: Market Resilience: Strength in Numbers
Perspectives

PODCAST: Market Resilience: Strength in Numbers

Concerns about where the financial markets are heading are at the forefront of many investors’ minds. The risks of a US or global recession this year continue to persist amid slowing global growth, trade tensions and worries about potential geopolitical shocks. Our senior investment leaders see a different story unfolding. In this roundtable discussion, they outline why they think some market observers are misguided and where they see opportunities today.

Steady Fed Maintains Dovish Stance
Fixed Income

Steady Fed Maintains Dovish Stance

The US Federal Reserve’s decision to keep interest rates steady at its March meeting came as little surprise, but its updated “dot plot” projections were interpreted by markets as sending a decidedly more dovish signal than expected. Franklin Templeton Fixed Income Group CIO Sonal Desai offers her take on the meeting, and why she feels markets shouldn’t read too much into the dots.

On My Mind: Modern Magical Thinking
Fixed Income

On My Mind: Modern Magical Thinking

In economic (and political) circles, “Modern Monetary Theory” has gotten some buzz of late. What does it mean—and does it have any merit? Franklin Templeton Fixed Income Chief Investment Officer Sonal Desai thinks it’s not only potentially dangerous, but offers intellectual fuel for populism.

On My Mind: The Fed Will Hike Again—Because It Can
Fixed Income

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
Perspectives

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.

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.”

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.  

A Dovish Fed Rate Hike
Fixed Income

A Dovish Fed Rate Hike

The US Federal Reserve raised interest rates for the fourth time this year, but with critics starting to question the central bank’s actions, will it take a tightening pause in 2019? Franklin Templeton Fixed Income Group’s Michael Materasso weighs in.