Beyond Bulls & Bears

Strategic Shifts: Optimizing fixed income allocations as the Fed’s hiking cycle ends
Fixed Income

Strategic Shifts: Optimizing fixed income allocations as the Fed’s hiking cycle ends

With expectations the Federal Reserve will start cutting interest rates at its September meeting, investors are asking, “what should we be doing with our fixed income allocation?” The Franklin Templeton Fixed Income team evaluates historical inflection points for fed funds rates to explore the impact on fixed income sectors and resulting investment opportunities.

Quick Thoughts: 2024 US election—implications for investors
Perspectives

Quick Thoughts: 2024 US election—implications for investors

The US presidential election is often seen as decisive for the economy and overall investor portfolios, but it may not matter as much as people think, according to Franklin Templeton Institute.

Quick Thoughts: Market dislocations—implications for investors
Multi-Asset

Quick Thoughts: Market dislocations—implications for investors

While markets appear to be in a tailspin over recent US economic data, it’s too soon to conclude the US is headed toward recession, according to Franklin Templeton Institute’s Stephen Dover. He weighs in on recent market action and the silver lining in Fed rate cuts likely ahead.

On My Mind: It’s not the end of the world as we know it
Fixed Income

On My Mind: It’s not the end of the world as we know it

Recent data releases appear to give the green light for the US Federal Reserve to begin easing monetary policy in September. However, according to Franklin Templeton Fixed Income CIO Sonal Desai, the key issue remains the nature of the easing cycle ahead—namely its duration, its speed, and the policy rate endpoint.

Flash Insights: July FOMC meeting—Powell runs ahead of the Committee as usual
Fixed Income

Flash Insights: July FOMC meeting—Powell runs ahead of the Committee as usual

Although the US Federal Reserve left policy rates unchanged at its July meeting, changes to the Federal Open Market Committee statement laid the groundwork for rate cuts. However, as the post-meeting press conference progressed, Chair Jerome Powell’s statement turned from balanced to slightly more dovish, according to Franklin Templeton Fixed Income Economist Nikhil Mohan.

Flash Insights: BoJ delivers on both fronts
Fixed Income

Flash Insights: BoJ delivers on both fronts

The Bank of Japan raised its policy rate to more than a 10-year high on July 31, a decision driven by elevated wage growth and the yen’s weakness, both of which pose upside risks to the inflation outlook. Franklin Templeton Fixed Income economists believe that further rate hikes are likely, both this year and next.

Uncovering income opportunities
Perspectives

Uncovering income opportunities

Inflation is cooling but the journey to the Fed's target is tough. Meanwhile, the labor market has steadied, hinting at less aggressive Fed rate cuts. Insights on the market implications from Franklin Income Investors CIO Ed Perks.

Quick Thoughts: GOP clean sweep? What it might mean for markets
Perspectives

Quick Thoughts: GOP clean sweep? What it might mean for markets

With the 2024 US election a focal point for investors, Franklin Templeton Institute’s Stephen Dover outlines the possible economic and market impacts of a Republican ”clean sweep” in November.

On My Mind: Let’s spend lots of money! US elections and fiscal prospects
Fixed Income

On My Mind: Let’s spend lots of money! US elections and fiscal prospects

Franklin Templeton Fixed Income CIO Sonal Desai discusses what the US government’s persistently loose fiscal policy means for the upcoming monetary policy easing cycle and, in turn, for the US Treasury yield outlook over the medium to long term.

Quick Thoughts: French first-round elections
Perspectives

Quick Thoughts: French first-round elections

Thoughts on the first round of the French elections and why governing France will likely prove challenging from Franklin Templeton Institute’s Stephen Dover.

Flood-risk mitigation in Slovenia: A case study
Fixed Income

Flood-risk mitigation in Slovenia: A case study

Climate change adaptation is becoming increasingly necessary. For asset managers, it is imperative to know which issuers are well prepared for future risk events. Using Slovenia’s flood-risk mitigation efforts as an example, we explain why a thorough understanding of both potential risks and relevant mitigation measures is a cornerstone of best-in-class impact investing.

Flash Insights: June FOMC meeting—erring on the side of caution
Fixed Income

Flash Insights: June FOMC meeting—erring on the side of caution

The Federal Reserve exercised caution at its June meeting, signaling only one interest rate cut in 2024. Policymakers will need to see more than just “modest further progress” on inflation before easing can begin, according to Franklin Templeton Fixed Income Economist Nikhil Mohan.