Archives

Coalition Politics: Compromise is Key to Funding Germany’s Future

A three-party coalition could soon govern Germany for the first time in the country’s history following recent elections. Matthias Hoppe, senior vice president and portfolio manager, Franklin Templeton Investment Solutions, believes uncertainty caused by coalition talks is likely to increase volatility in Europe’s financial markets, but changing a conservative attitude to public spending is the real challenge for a new government as Germany wrestles with the reality of increasing macro-economic imbalances and a stated aim to achieve carbon neutrality by 2045.

How the After-Effects of Recent Volatility Are Working Their Way Through Markets

Franklin Templeton Multi-Asset Solutions’ Matthias Hoppe examines the fallout from recent bouts of market volatility from a multi-asset investment perspective.

Germany Decides: Merkel Victory Has Long-Term Implications for Investors

"In the longer term, the election outcome could determine the pace of European reforms. These reform efforts have been a supporting factor in driving sovereign spreads.” - Matthias Hoppe, senior vice president and portfolio manager, Franklin Templeton Multi-Asset Solutions

What Can Mario Draghi Say to Avoid Upsetting Markets?

“We may already have reached the point where euro strength has tightened monetary conditions sufficiently to change the outlook for growth in corporate earnings and the appropriate path of monetary policy.” Matthias Hoppe, Franklin Templeton Multi-Asset Solutions

Continued Euro Strength Draws A Long Road Ahead for the ECB

“In our view, we think the ECB would prefer to avoid any major appreciation of the euro, particularly while inflation is still running below the 2% target. The question therefore is whether the ECB can do anything to avoid the euro’s rise.” Matthias Hoppe, Franklin Templeton Multi-Asset Solutions.

Thin Slicing the Markets: Has “Helicopter Money” Already Landed?

While in theory, the QE 'experiments' implemented post-2008 were intended to be temporary, I believe that in reality the expectation is that central banks around the world have no intention of ever unwinding the extra liquidity they have created.

Thin Slicing the Markets: Where’s the Deleveraging?

It appears the majority of countries have not really deflated their debt bubbles at all since the Global Financial Crisis of 2008-2009—indeed many have, in fact, added to their burden.

Thin Slicing the Markets: A Serious Referendum for the British Public

While the consensus still anticipates a ‘remain’ vote, the end result is very much in question. The one-way tide that ‘stay’ had enjoyed for most of the spring has been shaken over the last several weeks.

Thin Slicing the Markets: A Look at Debt, and Defensive Postures

While Americans (and American corporations) continue to lever everything but their kitchen sinks on their collective balance sheets, the return for each dollar borrowed is rapidly diminishing.

Risk Factor Investing: It’s Not All About The Upside

We recognize that very few risk assets—even those considered to be 'safe assets'—are not without their challenges. Most face some kind of headwind.

Opportunistic Views on Europe