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
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
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
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
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
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 …
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 …
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 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
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
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
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
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
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
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:
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
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
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
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.
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”
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
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 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
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
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
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
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
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
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
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
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
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
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.
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.
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
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
Beyond Bulls & Bears
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
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
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 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.
What the new nasdaq-style exchange could mean for investors China will be launching a Nasdaq-style stock market for technology and research-driven companies to list and raise capital. We believe this upcoming science and technology innovation board is of strategic importance
Allocation Views The global economy is slowing, trade tensions dominate investor sentiment and inflation in the major economies is subdued. A broad-based stock rally in the early part of this year extended a notable divergence against the less optimistic views
Impact investing is a growing practice that now covers almost $250 billion in assets under management (AUM). 1 It differs from other kinds of sustainable and responsible investment strategies, such as the exclusion of certain investments on ethical or religious
#1: Understand Your Time Horizon In the decade since the global financial crisis, many investors have either actively steered—or ended up with—a large portion of their portfolios in investments tied to economic growth, namely stocks. However, as global growth begins
Perspective from Franklin Templeton Multi-Asset Solutions In recent Allocation Views publications, we have highlighted concerns about the global economy and uncertainties in financial markets. These themes remain unchanged in our analysis. A return to long-run levels of market volatility since
China is at a crossroads. After years of heady growth, it now faces a potent mix of external and internal challenges that threaten to curb its momentum. Its prospects will hinge on how well it responds to these challenges, on
China is at a crossroads. After years of heady growth, it now faces a potent mix of external and internal challenges that threaten to curb its momentum. Its prospects will hinge on how well it responds to these challenges, on
Perspective Emerging market equities saw mixed performances in February, with stocks in Asia faring better than stocks in Latin America and emerging Europe, which underperformed. Franklin Templeton’s Emerging Markets Equity team outlines what drove market moves during the month and
In February 2018, Templeton Global Macro (TGM) published Global Macro Shifts issue 9—Environmental, Social and Governance Factors in Global Macro Investing [GMS-9]. The paper explored how we evaluate environmental, social and governance (ESG) factors in our macroeconomic research process, and
Can green and ethical investing help us build back better in a post-pandemic world? Find out in this @raconteur article written by @SustMeme.
It carries insights from a range of market perspectives and leading contributors with expertise in both sustainability and investment.
