Beyond Bulls & Bears

Card image cap
Fixed Income

The Fed’s Long Unwinding Road

“The multi-year massive expansion of the Fed’s balance sheet has had a recognized powerful effect on asset markets—lowering yields and flattening the yield curve. Yet investors now seem to expect that the reverse process will have little impact, if any. We disagree.” - Michael Hasenstab, Templeton Global Macro

Card image cap
Fixed Income

In the Know: Trump’s Fed Chair Pick Seen as Market Positive

“The markets should take some comfort in Powell, as he is a current Fed governor and more or less represents the current state of affairs, business as usual. He has worked alongside Yellen since 2012, and they are philosophically alike (dovish bent).” Christopher Molumphy, Franklin Templeton Fixed Income Group

Card image cap
Fixed Income

Global Economic Perspective: October

In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group discusses the state of the US economy and monetary policy implications, the fallout from the German elections and impact of the Catalonia crisis in Spain.

Card image cap
Fixed Income

Global Economic Perspective: September

In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group examines the potential impact of recent storms on the US economy, Europe’s monetary policy path and whether the global economy’s upturn is sustainable.

Card image cap
Fixed Income

The Fed’s Balancing (Sheet) Act

The Federal Reserve’s September policy meeting played out largely as expected, as US monetary policymakers left the central bank’s benchmark short-term interest rate unchanged. The Fed did clarify when it would begin to unwind its hefty balance sheet, and updated its economic forecasts and interest-rate projections. Chris Molumphy, Franklin Templeton Fixed Income Group CIO, says the communication from the latest Fed meeting should not rattle the markets much, and that the next interest-rate hike now seems most likely to come in December.

Card image cap
Perspectives

Time to Reset Expectations?

Global markets have been relatively calm this summer despite many uncertainties. Geopolitical risks have continued across the globe, and in some areas, looming monetary policy changes also appear likely. A key question for many investors is whether the sleepy summer period of low volatility will give way to a more turbulent autumn. Franklin Templeton’s senior investment leaders offer their perspective on the markets and discuss where they see opportunities and risks ahead.

Card image cap
Fixed Income

Why ECB Tapering Could Prompt a Change in Bond-Market Philosophy

“While some commentators may question whether the ECB should embark on tapering when it still doesn’t see itself hitting its inflation target within its time horizon, I would say that’s exactly what the central bank should do.” - David Zahn, Franklin Templeton Fixed Income Group

Card image cap
Fixed Income

The End of the Eurozone’s QE Era?

”We know the European Central Bank (ECB) likes to flag changes to its monetary policy approach well before they’re implemented. That’s why we expect an imminent announcement from ECB President Mario Draghi that the bank will start winding down its quantitative easing (QE) program next year.” David Zahn, Franklin Templeton Fixed Income Group.

Card image cap
Fixed Income

Global Economic Perspective: August

In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group takes a look at recent US economic data, and increased skepticism among many market participants about whether the Federal Reserve will implement another increase in interest rates before the end of the year.

Card image cap
Fixed Income

Global Economic Perspective: July

In this month's Global Economic Perspective, our Fixed Income Group dives into diverging central bank policy and weighs in on whether the European Central Bank is likely to be less accommodative—and what its timing might look like.

Card image cap
Alternatives

Third Quarter Hedge-Fund Strategy Outlook: K2 Advisors

K2 Advisors seeks to add value through active portfolio management, tactical allocation and diversification across four main hedge strategies: long short equity, relative value, global macro and event driven. In their third-quarter (Q3) 2017 outlook, K2 Advisors’ Research and Portfolio Construction teams share the key market events they have an eye on, along with the select strategies that represent their “top convictions.”

Card image cap
Fixed Income

If It’s Groundhog Day, Why Aren’t Investors Learning the Lessons?

The repeated financial market patterns of recent years have reminded some market professionals of the 1993 Bill Murray movie "Groundhog Day." But according to Christopher Molumphy, CIO of Franklin Templeton Fixed Income Group®, investors may be missing the most important lesson of that movie: take control of your destiny.