Beyond Bulls & Bears

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Equity

Why Gold-Mining Stocks Could Regain Some Luster

"It seems to us that gold’s inability to hold a rally over the last 18 months has created fatigue with investors. As a result, many investors have felt they should sell into rallies. However, given the overall global macroeconomic backdrop, this view may be creating an interesting opportunity for longer-term investors.” – Steve Land, Franklin Equity Group

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Equity

Notes from the Trading Desk – Europe

By indicating an intention to gradually move away from the easing bias, it is interesting to see the policy of the BOE broadly following the US Federal Reserve (Fed) and European Central Bank (ECB). That said, if the BOE does raise rates in November, it would only a reversal of the rate cut in the immediate aftermath of the Brexit vote, and interest rates will still be very low versus historic levels. - Franklin Templeton European Trading Desk team

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Perspectives

Time to Reset Expectations?

Global markets have been relatively calm this summer despite many uncertainties. Geopolitical risks have continued across the globe, and in some areas, looming monetary policy changes also appear likely. A key question for many investors is whether the sleepy summer period of low volatility will give way to a more turbulent autumn. Franklin Templeton’s senior investment leaders offer their perspective on the markets and discuss where they see opportunities and risks ahead.

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Equity

Is France on the Cusp of a Thatcher Moment?

French President Emmanuel Macron is preparing to take on France’s powerful unions as he attempts to overhaul the country’s labour code. Here, Philippe Brugere-Trelat, Franklin Mutual Series executive vice president, explains why a Macron victory on this front could open up opportunities for investing in French equities.

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Equity

UK Equity: What Dividends Can Tell Us About UK Economic Sentiment

“Special dividends may indicate that companies would rather return money to shareholders than expand. There could be a lack of investment opportunities and potential concerns around Brexit and future UK economic growth.” - Colin Morton, portfolio manager, UK Equity team

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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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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

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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Equity

How Our Investment Assumptions Colour Our Mid-Cap Strategy

In a year filled with economic and political uncertainty, it remains difficult to predict what the future holds. While Paul Spencer, Franklin UK Equity team, shuns the crystal ball, he presents some base-case expectations in the United Kingdom to underpin his investment approach.

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Equity

Addressing Always-Connected Technology

"We believe the transition to technology-on-demand will likely integrate technology even further in our day-to-day lives in the years ahead.” - Matt Moberg, Franklin Equity Group