Navigating Covid-19 and Other Market Shocks

Dr. Michael Hasenstab discusses the latest gyrations in global financial markets.

    Michael Hasenstab, Ph.D.

    Michael Hasenstab, Ph.D. Chief Investment Officer, Templeton Global Macro

    A s we navigate and manage how to adjust in the face of this novel coronavirus, we at Franklin Templeton feel it is important to continue to provide our valued clients with up-to-date analysis by our senior leaders and investment professionals.

    In this recording, Dr. Michael Hasenstab, Chief Investment Officer, Templeton Global Macro, provides insights based on his expertise in global fixed income markets and the factors which influence them.

    WHAT ARE THE RISKS?

    All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in an investment portfolio adjust to a rise in interest rates, the value of the portfolio may decline. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. Investments in emerging markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Actively managed strategies could experience losses if the investment manager’s judgment about markets, interest rates or the attractiveness, relative values, liquidity or potential appreciation of particular investments made for a portfolio, proves to be incorrect. There can be no guarantee that an investment manager’s investment techniques or decisions will produce the desired results.