Beyond Bulls & Bears

On My Mind – Inflation: Nothing to see here. Really?
Fixed Income

On My Mind – Inflation: Nothing to see here. Really?

Prices continue to climb, with the US CPI rising in June by the most since 2008. Financial markets seem to be unfazed, but businesses and consumers appear considerably less sanguine. In her latest “On My Mind,” our Fixed Income CIO Sonal Desai discusses why inflation may be less “transitory” than many expect.

On My Mind: Something Has to Give
Fixed Income

On My Mind: Something Has to Give

There are differing opinions for why US Treasury yields have suddenly dropped. In her latest “On My Mind,” our Fixed Income CIO Sonal Desai outlines three possible scenarios and the logical implications of each; in the current constellation of asset prices, she argues, something does not add up.

On My Mind – Inflation: The Devil We Knew
Fixed Income

On My Mind – Inflation: The Devil We Knew

Our Fixed Income CIO Sonal Desai has been ahead of the curve in flagging the risks of inflation and rising rates that have now entered the mainstream debate. In this article, she assesses the coming together of an unprecedented fiscal stimulus, a very accommodative US Federal Reserve, and an economy poised to rebound as vaccination campaigns pave the way for reopening businesses. She cautions that central bankers might be underestimating how difficult it will be to deal with the 'devil they knew'—inflation—especially if inflation expectations become unmoored; and, she highlights the key fixed income investment implications.

On My Mind: Investment Strategies for a Booster-Shot Recovery
Fixed Income

On My Mind: Investment Strategies for a Booster-Shot Recovery

Our Fixed Income CIO Sonal Desai shares her investment views and strategies for the post-pandemic recovery. She explains why inflation looks likely to gain steam, and how the balance of fundamentals and valuations become especially crucial today when looking for attractive returns in fixed income. The Franklin Templeton-Gallup Economics of Recovery Study supports her bullish view for the global economy, and highlights how policymakers need to intensify their efforts to boost vaccine acceptance.

ESG Will Define the Post-COVID Era
Fixed Income

ESG Will Define the Post-COVID Era

“As we flip the calendar to 2021, we are getting closer to a point at which the economic shocks of the past year become prologue for the economic stories ahead. We anticipate being constructive in a number of regions as the world transitions toward a post-COVID era." - Michael Hasenstab, Executive Vice President, Portfolio Manager Chief Investment Officer, Templeton Global Macro.

US 2020 Election Investment Pulse: Policy and Pandemic Drive Macro View
Perspectives

US 2020 Election Investment Pulse: Policy and Pandemic Drive Macro View

We’ve seen aggressive government and central bank support to stimulate economies sickened from COVID-19 slowdowns, but will the global economy right itself in 2021? Templeton Global Macro CIO Michael Hasenstab and Francis Scotland, Director of Global Macro Research at Brandywine Global, share their macro outlook for the year ahead. They opine on whether the glass looks half empty or half full as the world eagerly awaits a vaccine and as US policies shift amid a change in administration.

On My Mind: A Strong Recovery, Many Challenges Ahead
Fixed Income

On My Mind: A Strong Recovery, Many Challenges Ahead

While the US economy has been staging a strong recovery from the COVID-19 pandemic, the challenge is far from over, says Franklin Templeton Fixed Income CIO Sonal Desai. She says the tug of war between the virus and the economy seems likely to continue until an effective vaccine is made available at scale.

US Election: Implications across the Pond
Fixed Income

US Election: Implications across the Pond

This November’s US presidential election pits Donald Trump against Democratic nominee Joe Biden, a longtime politician who represents a more progressive policy approach. Our Head of European Fixed Income David Zahn breaks down the implications of the US election for Europe, and why many of Biden’s policies line up more closely with European views.

PODCAST: Considering Mortgage-Backed Securities in a Fixed Income Portfolio
Fixed Income

PODCAST: Considering Mortgage-Backed Securities in a Fixed Income Portfolio

The COVID-19 pandemic has impacted all corners of the market, including mortgage-backed securities. Franklin Templeton Fixed Income’s Paul Varunok takes a closer look at the space, and why he feels they can offer some stability in a fixed income portfolio.

On My Mind: If You Open It, They Will Come
Fixed Income

On My Mind: If You Open It, They Will Come

After the shock of COVID-19, when will the global economy return to a sense of normalcy? Franklin Templeton Fixed Income CIO Sonal Desai examines some key economic activity indicators in the wake of the pandemic. She shares data on recent changes in US consumer behaviour which seem to signal people are eager to go back to normal life.

EU Delivers Comprehensive Fiscal Rescue Package
Fixed Income

EU Delivers Comprehensive Fiscal Rescue Package

The European Commission has unveiled a sweeping new €750 billion coronavirus fiscal rescue package, including the issuance of new bonds. David Zahn, our Head of European Fixed Income, calls it groundbreaking.

Fed Support Helps Stabilise MBS Market
Fixed Income

Fed Support Helps Stabilise MBS Market

Like most asset classes, mortgage-backed securities (MBS) have seen heightened volatility over the past two months as the world copes with COVID-19 and investors look to reduce risk. The MBS market managed to stabilise amid help from the US Federal Reserve, which purchased these and other securities in a broad support programme. Franklin Templeton Fixed Income Portfolio Manager Paul Varunok offers his outlook for the MBS market in light of recent events.