Beyond Bulls & Bears

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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

Value Update: Where Is the Next Pocket of Opportunity?

"As the anticipated value rally gains steam, we think non-US stocks should begin to benefit. Like the value universe a year ago, non-US equities today look to us to be undervalued, under-owned, and exposed to positive catalysts, including improving corporate fundamentals, economic tailwinds and political and policy support.” - Templeton Global Equity Group

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Equity

Could the Rally in Global Equities Keep Rolling?

If a policy-driven boost to growth doesn’t materialize, the markets, which have moved on the possibility of real change, could reverse just as fast.

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Perspectives

How Rising Inflation Could Ride to the Rescue of Eurozone Earnings

Recent experience suggests that equity markets in general have a problem pricing in political events and elections. However, we believe politics does not drive equity markets long term; rather, politics provides a short-term opportunity to take advantage of longer-term trends.

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Equity

Stock-Market Value Hunting—and a Potential Post-Election Outcome

When looking at various countries or regions where we invest, we consider emerging markets as representing a disproportionate amount of where equity value exists today after several years of underperformance relative to developed markets.

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Equity

What’s Driving US, European Voter Resentment?

Voters in a democracy often respond more to perception than reality, particularly when it comes to issues of patriotism, pride and identity. It isn’t always just about the bottom line.

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Equity

Brexit: How Quickly May the Surprise Wear Off?

Our view is it’s important to focus on the fundamentals of individual companies. We think it’s a stock-picker’s market, and there may be some attractive value opportunities opening up, although they may close rather rapidly.

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Value Unbound: The Implications of a Nascent Value Revival

During the (tech) bubble, all it took to topple tech stocks priced for perfection was a little bit of bad news. Just a little bit of good news may be sufficient today to spark a recovery among value stocks that seem to be pricing in permanent disappointment.

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Equity

Can European Banks Rebound from the “Triple Whammy”?

Although we expect banks will likely have to raise their loan-loss provisions for energy borrowers in the near term, we don’t believe it will significantly crimp their bottom lines.

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Alternatives

Oil’s Well That Ends Well?

With the modest-at-best global economic recovery after the still front-of-mind global financial crisis trauma from 2008-2009 … markets are understandably preoccupied with the scope for unpleasant shocks.

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On January Barometers and Market Bargains

We are now witnessing historic extremes in the discount afforded to value relative to growth, quality and safety. While this environment has been (and may remain) painful for some time, the eventual normalization of these extremes represents the most compelling opportunities in equity markets today.

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A Year for Value?

While stocks are certainly vulnerable to near-term volatility, we think the asset class globally remains well positioned for long-term performance potential.