Beyond Bulls & Bears

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: Market Volatility: The Factors, Risks and Opportunities
Multi-Asset

PODCAST: Market Volatility: The Factors, Risks and Opportunities

Our emotional reactions can influence our behavior in many ways—including investing. When markets face heightened volatility, many investors start to panic in fear—sometimes to the detriment of their long-term financial goals. Wylie Tollette, head of Client Investment Solutions, Franklin Templeton Multi-Asset Solutions, looks at the factors driving the latest bout of market volatility, including the impact of short-term investor behavior. He says times of volatility present opportunities to rebalance one’s portfolio, but adds investors shouldn’t wait for the market to tumble to start thinking about risk management.