Beyond Bulls & Bears

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Equity

An Opportune Time to Change Investors’ Perception of Investing in Europe

“Gross domestic product growth in the euro area has quietly overtaken that of the United States so far this year. But the risks once associated with political uncertainty, populism and fears over the possible break-up of the European Union (EU) have not proven as potent as they initially appeared.” Robert Mazzuoli, portfolio manager, Franklin Local Asset Management

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Fixed Income

The End of the Eurozone’s QE Era?

”We know the European Central Bank (ECB) likes to flag changes to its monetary policy approach well before they’re implemented. That’s why we expect an imminent announcement from ECB President Mario Draghi that the bank will start winding down its quantitative easing (QE) programme next year.” - David Zahn, Franklin Templeton Fixed Income Group

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Equity

Macron at 100 Days: New French President Faces Busy Autumn

“Although polls have shown that Macron’s approval ratings have fallen since the election, I don’t see this drop as cause for concern. The ebbs and flows of popular polls are natural, in my opinion, following the giant wave of hope that swept Macron into office. That hope is now meeting the cold light of reality.”– Philippe Brugere-Trelat, Executive Vice President, Franklin Mutual Series

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Equity

Global Economic Perspective: August

In this month’s Global Economic Perspective, Franklin Templeton Fixed Income Group takes a look at recent US economic data, and increased skepticism among many market participants about whether the Federal Reserve will implement another increase in interest rates before the end of the year.

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Equity

US Tech Sector: Continued Run-Up or Correction Coming?

Since the infamous “dot com” meltdown nearly two decades ago, people have tended to question any sort of extended run-up in technology-sector stocks. Stephen Dover, executive vice president and head of equities at Franklin Templeton Investments and chief investment officer, Templeton Emerging Markets, recently recorded a podcast centered on the theme of technology and how investors might view the sector. In this new podcast, he explains why he thinks the situation today is very different from the dot com meltdown.

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Equity

Why It’s Time to Get Back to Basics

“We think the good earnings growth so far this year provides a reasonably positive corporate earnings backdrop for the rest of the year. The earnings backdrop should play an important role in [UK] small-cap performance going forward, especially compared against the top end of the market, where the tailwind of sterling depreciation has now virtually faded.” – Richard Bullas, Franklin UK Equity team, August 15, 2017.

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Equity

Notes from the Trading Desk – Europe

"Last week was quiet until sleepy summer markets were woken by a war of words between North Korea and the United States, with both sides threatening military action. On the back of this we saw a de-risking across asset classes, and global equity markets declined across the board." - Franklin Templeton European Trading Desk team

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Equity

Navigating an Uncertain Second Half

Receding political anxiety and a gathering economic recovery in Europe helped global equity markets advance in the first half of 2017. Yet Templeton Global Equity Group’s Cindy Sweeting and Tony Docal say investors should be somewhat cautious in the second half of the year. They believe rich stock valuations and shifting central bank policies could lead to bouts of volatility.

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Fixed Income

India’s Reform Movement Gains Momentum

Templeton Global Macro CIO Michael Hasenstab recently visited India, and takes a look at some of the reforms he’s most excited about as a global fixed-income investor. He believes India’s future looks bright and that its growth trajectory should remain strong—despite some short-term adjustments.