Beyond Bulls & Bears

Asia at the Forefront: The World’s Uneven Emergence from COVID-19
Fixed Income

Asia at the Forefront: The World’s Uneven Emergence from COVID-19

There is significant variation in how countries have handled the pandemic, managed fiscal and monetary policy, and supported their economies, according to Templeton Global Macro. While the euro area and the US contend with deepening fiscal deficits and excessive monetary accommodation, areas of Asia are in stronger fiscal shape, with greater growth potential, robust trade dynamics and current account surpluses.

Coming Out of COVID-19: A Look at Interest Rates and Inflation in Europe
Fixed Income

Coming Out of COVID-19: A Look at Interest Rates and Inflation in Europe

There is hope that economies will see a more sustainable and robust recovery this year, given unprecedented levels of monetary and fiscal stimulus and as more individuals are vaccinated against COVID-19. But one question for investors is what happens next—will inflation and higher interest rates be a consequence? Our Head of European Fixed Income David Zahn shares his views.

On My Mind – Inflation: The Devil We Knew
Fixed Income

On My Mind – Inflation: The Devil We Knew

Our Fixed Income CIO Sonal Desai has been ahead of the curve in flagging the risks of inflation and rising rates that have now entered the mainstream debate. In this article, she assesses the coming together of an unprecedented fiscal stimulus, a very accommodative US Federal Reserve, and an economy poised to rebound as vaccination campaigns pave the way for reopening businesses. She cautions that central bankers might be underestimating how difficult it will be to deal with the “devil they knew”—inflation—especially if inflation expectations become unmoored; and, she highlights the key fixed income investment implications.

PODCAST: Putting Inflation Concerns in Perspective
Perspectives

PODCAST: Putting Inflation Concerns in Perspective

In our latest "Talking Markets" podcast, Franklin Templeton’s Chief Market Strategist, Stephen Dover, speaks with our Gene Podkaminer, Western Asset’s Mark Lindbloom, and ClearBridge Investments’ Michael Clarfeld about interest rates, deficits, inflation concerns, commodity prices, rising US Treasury yields, and the global rollout of the COVID-19 vaccine.

Still Looking for Alternatives? How about Real Assets?
Multi-Asset

Still Looking for Alternatives? How about Real Assets?

Ed Perks and Gene Podkaminer of Franklin Templeton's Multi-Asset Solutions team discuss the attractions of alternative assets that can offer natural portfolio diversification. Over a longer-term horizon, they continue to believe global stocks have greater performance potential than global bonds, or alternatives, but this outlook will not be reached along a smooth path.

Allocation Views: Taking a Nimble Approach to 2020
Multi-Asset

Allocation Views: Taking a Nimble Approach to 2020

Although easing US-China trade tensions have renewed investor optimism about global economic growth, Franklin Templeton Multi-Asset Solutions’ Ed Perks and Gene Podkaminer still see some potential geopolitical headwinds on the horizon. In the latest edition of “Allocation Views,” they share their concerns and explain why they continue to believe navigating challenges in the year ahead will require nimble management.

Adrift: Has Monetary Policy Become Unanchored?
Fixed Income

Adrift: Has Monetary Policy Become Unanchored?

In light of the Federal Reserve’s recent interest-rate cut, our Fixed Income CIO Sonal Desai takes a look at how US central bank thinking seems to have changed, and whether there’s a risk of having interest rates too close to zero. She argues deflation risks are overblown and looser monetary policy will lead to increased financial market distortions.

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.

Revisiting Corporate Credit amid Market Volatility
Multi-Asset

Revisiting Corporate Credit amid Market Volatility

“We are seeing firsthand how thriving corporate profitability has supported select corporate bonds at the fundamental level, seemingly in defiance of more aggressive US Federal Reserve policy and political and geopolitical challenges.” – Ed Perks, CIO of Franklin Templeton Multi-Asset Solutions

Talking Trade Tensions, Inflation and Volatility
Multi-Asset

Talking Trade Tensions, Inflation and Volatility

Global growth has been accelerating, but there are a few potential headwinds that could cause it to stall. Three of our senior investment leaders—Ed Perks, Chris Molumphy and Stephen Dover—recently participated in a panel discussion on the potential impact of trade tensions, inflation and other issues on their radar.

Will the Roar of Market Tensions Tame Global Growth?
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.

US 10-Year Treasury Crosses 3%: Much Ado About Nothing?
Fixed Income

US 10-Year Treasury Crosses 3%: Much Ado About Nothing?

On April 24, the US 10-year Treasury yield crossed the 3% threshold for the first time in four years, prompting much discussion about the potential implications for the US economy. But to reference a famous Shakespeare play, is all the media focus much ado about nothing? Franklin Templeton Fixed Income Group’s Michael Materasso says investors shouldn’t fret too much about the number.