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CONTRIBUTORS

Heather Waddell, CFA

Portfolio Manager/Research Analyst, Templeton Investment Counsel, LLC
United States

Peter Nori, CFA

Portfolio Manager/Research Analyst, Templeton Investment Counsel, LLC
United States

Matthew Nagle, CFA

Portfolio Manager/Research Analyst, Templeton Investment Counsel, LLC
United States

Preview

We remain aware of near-term opportunities and challenges, but our focus is more on the impact multi-year market trends may have on the valuations of individual companies.”
–Heather Waddell

Since the days of Sir John Templeton, Templeton Global Equity Group has been known for its willingness to differ from the crowd. How does this play out in the current environment?

We are not contrarians for the sake of being different, but there are times when a differentiated view and positioning is necessary. This applies to some of the most important developments in global markets today, such as artificial intelligence (AI), the rise of green energy, new opportunities in Asia and more. 

Topics covered in this outlook include:

  • Artificial intelligence
  • Semiconductors
  • Opportunities in Asia
  • Green energy
  • The team’s views on defensiveness
  • Investing in 2024

Read the full paper to learn how the Templeton Global Equity Institutional team expects the ever-changing global economy to continue creating opportunities for those willing to think differently, as we head into 2024.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal.

Equity securities are subject to price fluctuation and possible loss of principal.

International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Investments in companies in a specific country or region may experience greater volatility than those that are more broadly diversified geographically.

The government’s participation in the economy is still high and, therefore, investments in China will be subject to larger regulatory risk levels compared to many other countries.

There are special risks associated with investments in China, Hong Kong and Taiwan, including less liquidity, expropriation, confiscatory taxation, international trade tensions, nationalization, and exchange control regulations and rapid inflation, all of which can negatively impact the fund. Investments in Taiwan could be adversely affected by its political and economic relationship with China.

Investments in fast-growing industries like the technology and health care sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments.

Investing in the natural resources sector involves special risks, including increased susceptibility to adverse economic and regulatory developments affecting the sector—prices of such securities can be volatile, particularly over the short term.

Franklin Templeton and our Specialist Investment Managers have certain environmental, social and governance (ESG) goals or capabilities; however, not all strategies are managed to “ESG” oriented objectives.

Any companies and/or case studies referenced herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised by Franklin Templeton. The information provided is not a recommendation or individual investment advice for any particular security, strategy, or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio.

IMPORTANT LEGAL INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. All investments involve risks, including possible loss of principal.

Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments opinions and analyses in the material is at the sole discretion of the user.

Products, services and information may not be available in all jurisdictions and are offered outside the U.S. by other FT affiliates and/or their distributors as local laws and regulation permits. Please consult your own financial professional or Franklin Templeton institutional contact for further information on availability of products and services in your jurisdiction.

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Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.

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