Beyond Bulls & Bears

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Alternatives

First Quarter Hedge-Fund Strategy Outlook: K2 Advisors

“The bottom line is that we believe the massive tide of low-cost money that lifted all boats and allowed for carefree sailing is receding. Investors who are not prepared for this change may be exposed to significant risks.” - K2 Advisors

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Fixed Income

Global Economic Perspective: January

"Just as attempts to use historical precedents to predict the length and durability of the US economic cycle are undermined by the idiosyncratic nature of its recovery since the global financial crisis, much the same argument can be made about the wider global economy.” - Franklin Templeton Fixed Income Group

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Equity

Keeping One’s Options Open: The Case for Global Convertibles

When the outlook is uncertain, it can be good to keep one’s options open. Alan Muschott, vice president and portfolio manager, Franklin Equity Group, says convertible securities’ ability to adapt to myriad market conditions makes them an attractive vehicle as we head into the uncertainties of the year ahead. He outlines why companies issue convertible securities—and why many investors find them an attractive addition to their portfolios.

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Equity

Shedding Light on the US Utilities Sector

“We see many reasons to be optimistic about [US] utilities today as we look out over the next 10, 20 or 30 years. In our view, most companies have established constructive regulatory relationships and should be able to adjust to the higher cost of capital assumptions that would develop due to rising interest rates.” – John Kohli, Franklin Equity Group

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Equity

Winded Markets May Face a More Difficult Climb in 2018

“We believe this rosier global outlook is largely priced into equities. The US market is looking the most expensive to us at a time when US corporate earnings are already well past their prior peaks.” – Coleen Barbeau, Franklin Equity Group

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Perspectives

Global Investment Outlook 2018: Reflections on Growing Economies and Fading Stimulus

As markets shift away from the recovery era of monetary accommodation amid synchronised global growth, some investors may be wondering where potential opportunities can be found. We present a summary outlook for the year ahead from Franklin Templeton’s global macro, fixed income, equity and multi-asset investment teams.

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Multi-Asset

The Market Implications of US Tax Reform a Bit Unclear

"Some market observers have expressed optimism that US tax reform will prove bullish for stocks—and the economy overall—but the reality is that there will be some winners and losers and we don’t ultimately know what the magnitude of the impact will be.” -Ed Perks, CIO, Franklin Templeton Multi-Asset Solutions

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Fixed Income

Global Economic Perspective: December

“The pattern of a strong cyclical upturn in the global economy combined with subdued inflation looks set to continue for some time, in our view. Nevertheless, we believe increasing demand and a diminishing pool of labor are likely to create meaningful pricing pressures at some point.” - Franklin Templeton Fixed Income Group

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Perspectives

Self-Driving Vehicles: The Race to Get Them on the Road

Technological advancements over the past two decades have moved the idea of self-driving cars from the realm of science fiction to fact. Recently, Franklin Templeton Investments assembled a panel of professionals to discuss the competition between traditional vehicle manufacturers and technology companies in the race to develop a truly autonomous car.

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Fixed Income

Fed Delivers Another December Rate Hike

“It’s important to note that the United States is still historically in a very low interest-rate environment, and frankly, keeping rates close to zero for a prolonged period really isn’t healthy. In our view, this tightening cycle actually represents a normalising of rates.” - Christopher Molumphy, Franklin Templeton Fixed Income Group

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Fixed Income

Why GCC Fixed Income Is an Overlooked Asset Class

Many investors could be underinvested in Gulf Cooperation Council (GCC) bonds, according to Dino Kronfol, chief investment officer, Global Sukuk and MENA Fixed Income. He explains why he believes the fixed income landscape is approaching a turning point—and why more investors may want to consider adding this dynamic asset class to their portfolios.

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Equity

Why Macron’s Reform Agenda Is Boosting Business Optimism

“We see signs that France’s economy is starting to improve under President Emmanuel Macron. France is enjoying its best streak of economic growth in more than six years. And, French companies are hiring at the fastest pace in almost 17 years." – Katrina Dudley, portfolio manager, Franklin Mutual Series