Hasenstab on Portfolio Construction in Volatile Markets

Positioning for an uncertain investment landscape.

    Templeton Global Macro

    Even before coronavirus and oil price shocks roiled global markets, Dr. Michael Hasenstab positioned the Templeton Global Macro strategies for an uncertain investing landscape. In this new video, he discusses the importance of portfolio diversification, potential vulnerabilities that investors should prepare for, and risk hedges he’s incorporating into portfolios.


    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 the prices of bonds adjust to a rise in interest rates, the share price may decline. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, 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.

    Diversification does not guarantee profit or protect against risk of loss.