Global economic slowdown ahead?
When we entered the second quarter of 2021, we stated in Allocation Views that “sometimes it is right to just go with the flow, at least for a while.” We thought that “this is perhaps one of those times” when
Back to homepage
Posts From Franklin Templeton
China calling: The rise of Chinese bond markets
In a year that saw record foreign inflows to Chinese bonds, 2020 was also a reflective year for me personally, having watched China’s economy grow over the last 40 years. I first traveled to China in
An update on our ESG scores
In February 2018, Templeton Global Macro (TGM) released its original paper on the topic of environmental, social and governance (ESG) factors in sovereign fixed income investing. The paper (Global Macro Shifts—issue 9 [GMS-9]) explored the team’s novel approach to ESG
Inflation, rotation and opportunities
Our outlook draws on our wide range of independent investment managers to deliver asset class insights. Each manager approaches the economic environment with a different lens and offers views to help inform your decision making. As we look forward to
Some like it hot?
We have seen an exceptionally sharp pickup in growth expectations, centered on the United States. Economists have adopted a narrative of a rapid fiscally fueled expansion, which supports a strong rebound in corporate earnings. Some of the drivers are global in nature, such as the continued rollout of vaccines that appear to be having the desired effect …
Still a lot of uncertainty
It seems like global financial markets and economies are experiencing a neverending fluctuation between increased clarity, as we described in last months’ Allocation Views, and continued uncertainty. Depending on …
Allocation views – A little more clarity?
As we enter 2021, financial markets appear to be clinging to a more optimistic view of the world than the one we left behind in 2020. Undoubtedly we have reasons to be more hopeful, but it seems that we still
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,
A brighter year ahead
The themes we discuss at our Annual Investment Symposium guide our research process. Over a longer-term horizon, we believe global stocks have greater performance potential than global bonds, supported by sustained growth and moderate inflation. With government bond term premia
Water disruption: investment risk from multiple angles
Franklin Templeton Thinks [tm]: Water Disruption There is a lot of talk about how regulatory reforms connected to climate change will impact financial markets. However, we firmly believe the leading issue, at the end of the day, is that we
Growth is dependent on ongoing stimulus
Allocation views We are growing more accustomed to the strange new landscape left behind after the COVID-19 recession. The virus threat remains very real, with notable flare-ups in Europe more recently, even as populations get more used to dealing with
Emerging Market Debt Rallies on a Wave of Liquidity
On the back of a second-quarter rally across emerging market debt (EMD), sovereign bond vulnerabilities still vary signifi cantly by region and country. Lower oil prices offer a boost to oil importers like the Dominican Republic, but if prices fall
Investing in Innovation
Over the last decade, smartphones have revolutionized our lives in ways that go well beyond mere audio communication. In addition to Facetime video chats, texting and emailing, billions of people globally use smartphones to shop online, check the weather, hail
COVID-19 and the Private Debt Markets
There is no doubt that news surrounding COVID-19 and the fascinating volatility in the publicly traded markets due to this global pandemic have captivated nearly everyone’s attention in recent months. The private credit markets, which tend to be less thoroughly
Looking Forward to Back to to School?
Allocation views As we enter the typically quieter months of the northern-hemisphere summer, we are starting to adapt to a new way of doing things. It is not quite as it was before, but it …
Growth momentum in the global economy is improving
Allocation views Last month in Allocation Views, we wrote about financial markets becoming inured to the publication of data that had been shockingly weak. Indeed, the level …
Navigating Uncertain Waters: Preparing For A Post-Pandemic World
We are now in the early stages of a downturn that will be more profound, in terms of economic and social magnitude, than the global financial crisis (GFC). Global growth is expected to experience a contraction five times what was
Investing in China: Consumers and technology recovering
Investing in science China has been much in the news recently as it handles the COVID-19 virus, and because of political and trade tensions with the West. We continue to believe China remains a growth opportunity for investors. Indeed, by
Allocation views
Hold the course As the world adjusts to life with the specter of COVID-19, it is increasingly clear that much has changed. We have become used to social distancing and unimaginably weak economic data. However, although we have become familiar
Opportunities and qualities in GCC bonds
As investors navigate new market uncertainties, we believe the trend away from traditional asset classes in the search for income in a low-yield environment is likely to continue, if not accelerate, as the world begins to navigate a new economic
Global recession prompts “whatever it takes” response
Allocation views We have seen a robust global central bank policy response that, in its breadth and scale, is larger than all the stimulus programs seen during the 2008 global financial crisis. Events and timelines have been compressed in this
K2 Hedge Fund Strategy Outlook—Q2 2020
Q2 2020 Outlook: Summary In our view, pricing dislocations between companies, industries, regions and asset classes due to the impact of COVID-19 and corresponding price adjustments offer abundant opportunities for select hedged strategies. The length and depth of both the
An update on our ESG Scores
For several years, Templeton Global Macro (TGM) has been at the forefront of incorporating environmental, social and governance (ESG) factors into sovereign fixed income investing. Our proprietary Templeton Global Macro ESG Index (TGM-ESGI) was one of the first methodologies in
What a difference one quarter can make
A global update from Franklin Templeton Multi-Asset Solutions When we turned the calendar over to a new year and a new decade, little did we know how different the world would look in just three short months. A silver lining:
Uncertainty and opportunity
In this issue, we describe a framework to help us work through a sharp deterioration in market sentiment. As policymakers are called upon to provide support to the global economy, we focus on how the evolving macroeconomic backdrop is affecting
The path to recovery: What’s next?
Looking at the economic and market outlook for 2020 just a few months ago, there’s no doubt times have changed. The spread of the coronavirus dealt a severe, unexpected shock that impacted people— and markets—around the globe. Many investors are
Middle Market Direct Lending: Benefits of Pursuing Both Sponsored and Non-Sponsored Transac
Key Takeaways We believe it is important for investors to understand the differences between sponsored and non-sponsored direct lending approaches. There are advantages and disadvantages to both. As a lender, we think it’s wise to pursue both approaches. Both can
US Equity Market Update: Three Reasons for Optimism
The impact of the coronavirus on the US economy still isn’t fully known yet, as the situation continues to evolve. However, Franklin Equity Group’s Grant Bowers sees at least three reasons to be optimistic about the long‑term recovery.
More Heavy Lifting from the Fed—While Congress Squabbles
Beyond Bulls & Bears The US Federal Reserve continues to use whatever tools it can to help combat economic fallout from the coronavirus. Sonal Desai, Chief Investment Officer, Franklin Templeton Fixed Income, calls its latest response “a whole new level”
Uncertainty tempers our enthusiasm
Allocation views Our view of global growth has been getting more optimistic over the last few months as signs of stabilization have appeared in many economies. Areas that were notably weak, such as manufacturing in Germany, have turned up somewhat
2020 – Will the economy survive the politics?
In this issue New year, new decade, we’re off to the races. None of the doom-and-gloom predictions materialized in 2019. Trade tensions did not spiral into out-of-control trade wars, new tariffs did not have a major macroeconomic impact, the US
Fears Over Virus Outbreak Curb Investor Optimism in January
Fears Over Virus Outbreak Curb Investor Optimism in January Our emerging markets equity team looks at news and events shaping emerging market performances in January, from coronavirus fears to trade to Middle East tensions. Three Things We’re Thinking About Today
Stabilization amid heightened uncertainties
Allocation views – Perspective from Franklin Templeton Multi Asset Solutions The new year started with a bout of volatility, driven by tensions in the Middle East. US forces assassinated General Qassem Soleimani, leader of Iran’s Revolutionary Guard Corps, which grabbed headlines and
Stabilization amid heightened uncertainties
Allocation views – Perspective from Franklin Templeton Multi Asset Solutions The new year started with a bout of volatility, driven by tensions in the Middle East. US forces assassinated General Qassem Soleimani, leader of Iran’s Revolutionary Guard Corps, which grabbed headlines and
2020 Capital Market Expectations: Continued support for asset returns 2
We believe global stocks have greater performance potential than global bonds, supported by continued global growth. Within both bonds and equities, we continue to forecast stronger return potential for emerging markets, over a seven-year investment horizon. With short-term interest rates
2020 Outlook for Emerging Markets Equity Investing
While US‑China trade issues still haven’t been resolved, there are reasons to be optimistic about the prospects for emerging markets in the coming year, according to Manraj Sekhon, chief investment officer, Franklin Templeton Emerging Markets Equity. He shares his outlook
2020 appears tilted to the downside
Major themes driving our views Slower global growth remains a concern Growth momentum is negative, but the consumer remains resilient. Trade disputes are only a symptom of broader, potentially longer-term, tension between the United States and China. With profit margins
Contagion may be spreading through the global economy
Allocation views The global economy continues to face headwinds, and risks are mounting. Trade tensions are spreading from country to country, and increasingly, manufacturing weakness is starting to infect the much larger service sector. Recurring equity market declines appear likely
Quantitative science—actively adding to fi xed income decisions
Franklin Templeton Thinks – fixed income markets In this Issue Fixed income investing has undergone a sea change in the past decade. By tossing out some active management orthodoxies and embracing new technologies and quantitative techniques, we believe some managers
No need to panic-keep calm and carry on
Fixed Income Views Our expectation continues to be that the global economic outlook will prove more resilient than widely predicted by many market participants. While the trade and political environment is significantly more volatile than during past periods, the US economy continues to hold
Allocation views – Contagion may be spreading through the global economy
The global economy continues to face headwinds, and risks are mounting. Trade tensions are spreading from country to country, and increasingly, manufacturing weakness is starting to infect the much larger service sector. Recurring equity market declines appear likely when untested
Responsible Investment as a Motivator for Generation DC
There have been significant changes in the UK pension landscape in recent years following government action to dramatically increase participation rates. The policy of automatically enrolling eligible employees into a pension scheme has tackled some of the structural changes required.
Allocation Views
Contagion may be spreading through the global economy The global economy continues to face headwinds, and risks are mounting. Trade tensions are spreading from country to country, and increasingly, manufacturing weakness is starting to infect the much larger service sector.
Allocation Views
This question appears to be on the lips of trade negotiators, central bankers, and investors world-wide. The more that people scratch their heads and wonder what happens next, the more likely it is that two things happen: the yield on
Discovering Value In Climate Change Investing
In this paper, we hope to answer two basic questions for investors: Why should investors care about climate change? How does Templeton approach climate-related risks and opportunities? Our main goal is first to demonstrate six climate considerations that have a
Three Reasons to Consider Dividend Growers
Beyond Bulls & Bears
The Federal Reserve: Dealer’s Choice
Beyond Bulls & Bears The US Federal Reserve cut its benchmark short‑term interest rate for the first time in 11 years in what Chairman Jerome Powell called a “mid‑cycle adjustment” to sustain the US economic expansion. Powell appeared to struggle
An Introduction to Impact Investing
Interest in impact investing is growing within the asset management industry, but there is still some confusion about it. We view impact investing’s defining feature as the explicit intention to generate positive, measurable social and environmental outcomes alongside a financial
Allocation Views
Perspective from Franklin Templeton Multi-Asset Solutions Divergence extends, raising concerns When we wrote about our Allocation Views last month, we were concerned about expectations that showed a notable divergence between financial markets. Heightening these concerns was a further rally in
Midyear outlook: Reining in risk
Midyear Outlook 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.
FEATURED
