November 2, 2020

With just one day until the November 3 US elections, our Head of Equities Stephen Dover joined Templeton Global Macro’s Katie Klingensmith and Fiduciary Trust Company International’s Gene Todd for a discussion about what they are keeping an eye on as investors. They explain why they think in times of uncertainty it’s so important to keep a long-term view, and why potential investment opportunities abound no matter who is in the White House.

Here are a few highlights from the conversation today:

  • “Be very careful about putting your own opinion into how you invest…”- Stephen Dover
  • “A blue wave is just a different structure of the economy that will produce a lot of different opportunities that we’ll be looking at it in a different way than we have over the last four years.” – Stephen Dover
  • “I think everyone should always keep in mind the market does not represent the economy and really knowing and predicting what is going to happen in the economy is not a very good predictor of what will happen in the market.” – Stephen Dover
  • “We’ve been talking about COVID for eight months now, and we thought that maybe we were behind it. We’re not behind it…We’ve had some good news on the job front…but we have so much further to go.” – Gene Todd
  • “There’s tremendous uncertainty out there, and we think the only certainty is uncertainty at the moment…. I would encourage people not to do anything rash because of the political environment, but it’s important to stay diversified. ” – Gene Todd

Transcript

Katie Klingensmith: Welcome everybody. I’m excited to welcome you to the first in a new series that we’re hosting here at Franklin Templeton, the Election Pulse series. I’m Katie Klingensmith and I’m with Franklin Templeton. I’ll introduce my guests in just a minute, but first I want to say a few words about what I think will be a really interesting conversation over the next nearly three weeks. As many of you know, Franklin Templeton merged with Legg Mason back this summer. And that has even increased further the breadth of expertise that we have available within the Franklin Templeton family of companies. We’re going to be leveraging so much of that intellectual capital through November 17th or longer if we need to, by bringing in experts from any number of different active asset managers, different perspectives around the world and within different investment spaces. For example, we’ll be taking some deep dives into managing volatility, which unfortunately seems to be very relevant right now.

We’re looking at asset allocation, bringing in some of our managers who focus on equity markets, fixed income markets, including with a global perspective and a real emphasis on Europe. We’ll also be taking a look at real estate investing, on munis. So I think it will be a really exciting series. I’m always here, same time, same place, but also this conversation will be recorded and distributed in a lot of different places. You can find it on our website. You can also find it as a podcast and we’ll be doing a blog with the content every day. That leads me to introduce our first speaker, Stephen Dover. Stephen is the head of the equities business at Franklin Templeton. He’ll also be the host of the series. You’ll see me a little bit, but Stephen will be facilitating conversations, engaging with investment leaders from across the organization. Today, I get to interview him. Welcome, Stephen.

Stephen Dover: Thank you, Katie.