Don't have an account?
Learn More -or- Register Now
Are you an expert on what it takes to generate income once your regular paycheck stops? Take this quick test to find out.
Take the TestSpryng is a new crowdfunding tool for college savings where you create a personalized profile and share it with friends and family.
Learn moreOpen popular accounts online:
Don't have an account?
Learn More -or- Register Now
Discussion at Franklin Templeton’s 2019 Global Investor Forum in San Francisco.
As one might imagine in light of recent news, trade was a big topic of discussion at Franklin Templeton’s 2019 Global Investor Forum in San Francisco this week. Our panelists addressed how the uncertainty is impacting the markets today—particularly emerging markets.
In this excerpt from the panel discussion, our Katie Klingensmith talks to Manraj Sekhon, Chief Investment Officer of Franklin Templeton Emerging Markets Equity and Mike Rosborough, Head of International and Emerging Market Fixed Income at California Public Employees’ Retirement System (CalPERS).
Katie Klingensmith: The trade conflict—is it really going to derail the economic trajectory that we see now?
Mike Rosborough: They’re playing the game the way they need to play the game. They, both Trump and Xi.
You ratchet up the rhetoric, you ratchet up the penalties and then you both try to find the win-win situation and the compromise, right? And something that saves face on both sides. So, you know, there are these things where you end up with a corner solution and it’s not a good one.
You have to view it in a positive light. Obviously, it creates a lot of market volatility, but at the end, you know, the net gain to everybody by liberalization has always been there. It’s just where are the gains and losses get distributed because there are always some losers and some winners, but the net benefit is to the greater good.
Katie Klingensmith: Manraj, you are in the region and have done quite a bit of work. Tell us a bit about where you see China.
Manraj Sekhon: I think first of all, in the very short term you have this episode with the US which we think will be an episode and in time will be resolved. Even if it’s not resolved, we believe that the Chinese economy is in a much better place than it was this time last year. And there are a lot more policy tools that they can employ in terms of monetary policy, fiscal policy, reform, stimulus for small- and medium-sized enterprises. So the economy is in a better place to deal with whatever the fallout is from the trade war. But beyond that, what I think this trade war has done, inadvertently or otherwise, is really focused the mind of the Chinese. So over the last nine months, whenever we meet people in China, what’s interesting is we see a different level of focus on reforms.
And what we see in China is probably, I would say, the most sustainable level of balance between the domestic and the external sector. We see the impact of technology. Some of the companies that we look at, I think business models, you will find difficult to see anywhere else. I’m not saying China will not have its share of crises. There will be crises, there are issues they still need to deal with in the financial sector. There’s still issues they need to deal with in the state-run enterprises, in industry. But I would say broadly speaking, given the external threats, given what’s happening domestically, the balance is probably as strong as we’ve ever seen.
All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. 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, in addition to those associated with these markets’ smaller size and lesser liquidity.
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.
Issued in the U.S. by Franklin Templeton Distributors, Inc., One Franklin Parkway, San Mateo, California 94403-1906, (800) DIAL BEN/342-5236, franklintempleton.com - Franklin Templeton Distributors, Inc. is the principal distributor of Franklin Templeton U.S. registered products, which are not FDIC insured; may lose value; and are not bank guaranteed and are available only in jurisdictions where an offer or solicitation of such products is permitted under applicable laws and regulation.
You need Adobe Acrobat Reader to view and print PDF documents. Download a free version from Adobe's website.
Franklin Templeton Distributors, Inc.
This website is for US residents.
This website is for US residents.
Copyright © 2021 Franklin Templeton. All Rights Reserved.
There are literature items in your cart. If you sign out, all items will be removed.
Click "Stay Signed In" to continue your session and keep items in your cart.
Otherwise, click Sign out to end your session and empty your cart.
You can compare a maximum of 4 funds.
Money funds and liquidated funds cannot be added to comparison.
Quarterly commentary discussing fund performance. View more details
Client Use: | (FINRA Letter) |
---|---|
Literature Code: | |
Format: | () |
Publication Date: | |
Next Update: |