Continued support for asset returns

Franklin Templeton
By January 12, 2021 12:09

Continued support for asset returns

Continued support for asset returns

2021 Capital Market Expectations

We believe global stocks have greater performance potential than global bonds, supported by sustained growth and moderate inflation. With short-term interest rates and government bond term premia remaining below historical averages, we see lower performance potential from government bonds, dragging down asset returns generally. Equity and corporate bond risk premia remain attractive and we continue to forecast stronger return potential for emerging markets over a 10-year investment horizon.

Our strongest convictions:

  • Portfolio return potential moving lower
  • Asset risk premia near average levels
  • Portfolio diversification remains key

Franklin Templeton
By January 12, 2021 12:09


Featured Events & Webinars

Events & Webinars


Our expert #Norman_Villamin explains why he prefers mining stocks over bank stocks for betting on a cyclical recovery. Find out more in his interview with @RohnerFuW from @FuW_News.

US data was better than expected last week with a pick-up in manufacturing (see #ChartoftheWeek), services and housing, plus further easing on the jobless claims front. A good start for the 46th president of the US. Read more in our Fixed Income roundup:

"With #vaccines to combat the #global pandemic being rolled
out beginning in late-December, Israel and the United
Arab Emirates (UAE) have led ..." -> by @UBP_Group

Vaccine rollouts are likely to take longer than expected, says UBP's expert @carcasall. Watch his interview on @BloombergTV to find out what this means for the economic recovery.

Which societal changes may become the new normal post-COVID? And how might you position your portfolios for the future? Join us 1/28 for a webinar discussion. CE Credit is available for #CFP and #CIMA designations.

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