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Franklin Templeton - 2019 Outlook

Volatility has plagued equity markets globally in 2018 - most notably emerging markets and US equity markets. As the US economic expansion officially crossed the nine-year mark in 2018, many investors started to wonder when the cycle would change - and what the catalyst might be.

What lies ahead for 2019?

Senior investment leaders of Franklin Templeton see plenty of reasons to be optimistic, but recognise markets may be more divergent in 2019, with some previously overlooked opportunities taking the spotlight.



KEY VIEWPOINTS:


  • It’s important to recognize that the state of the world that investors have become accustomed to for the last decade is not going to continue indefinitely. Market dynamics continue to shift as the sustainability of extremely low correlations becomes a lower-probability outcome. This environment is likely to favour active management.
  • Local-currency emerging markets show the highest level of undervaluation across the global fixed income markets. But it’s important to recognize that the asset class is not uniform. Individual countries are far more distinct than they were decades ago.
  • US earnings may have a hard time keeping pace with 2018 levels as the benefits of substantial fiscal stimulus from US tax cuts and greater public spending wane. However, Franklin Templeton see opportunities globally as earnings and economic disparities narrow between the United States and other countries.

Important Legal Information


These materials reflect the analysis and opinions of the authors as they intended on the stated publication dates, and may differ from the opinions of other portfolio managers, investment teams or platforms at Franklin Templeton Investments. It is intended to be of general interest only and not 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.


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The comments, opinions and analyses are the personal views expressed by the investment manager and are intended to be for informational purposes and 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 information provided in this material is rendered as at publication date and may change without notice and it is not intended as a complete analysis of every material fact regarding any country, region, market or investment. Reliance upon information in any posting on this site is at the sole discretion of the viewer.






December 2018

Please note that these are the views of Franklin Templeton and should not be interpreted as the views of RL360.




Authors

Franklin Templeton Investments


December 2018

Please note that these are the views of Franklin Templeton Investments and should not be interpreted as the views of RL360.

360 fund links

Funds from Franklin Templeton Investments are available via our guided architecture products Oracle, Paragon, Quantum, Quantum Malaysia, LifePlan, LifePlan Lebanon, Protected Lifestyle and Protected Lifestyle Lebanon, and also through our PIMS portfolio bond.