Franklin Core Enhanced Equity – conviction is the fifth element

The inflation outlook deteriorated, while growth remained resilient despite weakening household purchasing power, according to Franklin Templeton Fixed Income. AI-related investment continued to support industrial activity, though the expansion became more dependent on narrow growth drivers.

History suggests that the Fed’s first hike is not the problem; overly aggressive tightening is. Markets have generally absorbed rate-hiking cycles well, with volatility creating opportunities for long-term investors.

The US Treasury market is entering a new era. Financing government debt is becoming less about capital availability and more about the yield required to attract it.

Government borrowing is pushing up financing costs, threatening investment in the very sector that could help revive economic growth. Could fiscal restraint do more for markets than another interest rate cut?

In their latest publication, Templeton Global Macro highlights recent changes for developed and emerging markets in its ESG Index and discuss how the index methodology has been kept stable in the latest round of scoring.

Franklin Templeton Investment Solutions believes increasing market dispersion is creating attractive opportunities for hedge funds, with returns likely to be driven more by security selection and active management than broad market direction.