Tax Planning

The Delta variant’s impact on supply chains and domestic spending slowed economic activity in the third quarter. Consumer confidence dipped noticeably, and businesses’ outlook dimmed somewhat. Rising inflation, the product of goods and labor shortages, has been a concern.

The strong economic and market trends of the first half of 2021 wavered during the third quarter. The coronavirus delta variant caught up with the US at the height of the summer, just as vaccinations slowed and concerns grew that inflation might flare and persist.

Today's supply and inflation challenges stem from Brexit.

The rise of environmental, social and governance (ESG) investing is nothing short of extraordinary, according to Yu Meng, Chair of Asia Pacific at Franklin Templeton. As we are constantly reminded by extreme climate change events, he says urgent actions are required from all of parts of society and the economy, including the financial markets.

Need some new ideas about how to attract new clients or get greater share of wallet from ones you already have? Try a few of these on for size.

Are inflation forecasts reliable enough to shape policy?

There is a cost to waiting for interest rates to rise—you may be missing out on higher coupon rates and yields elsewhere. Rather than waiting on the sidelines for yields to rise, investors should consider short-term corporate bonds today—specifically those with fixed coupon rates.

Several events will have major influences on the global economy in the months ahead.

US stocks, as seen by the S&P 500, ended the third quarter unchanged, having shed over 4% in September as fears over the debt ceiling and the Fed’s options erased the summer’s progress. Certainly, the market environment has changed a lot over the past 18 months. Valuations are up, economic data is varied, and the prospects of potential Fed action are growing.

The next decade will see an urgent and widespread boom in investments in innovation across all economic sectors, according to Stephen Dover and Kim Catechis of the Franklin Templeton Investment Institute. They say this technology wave will be experienced in both private and public sectors, and in every facet of investment portfolios for years to come.

With potential tax increases on the horizon, advisors can take steps now to minimize the impact of any changes in tax policy.

As we sit atop our prosperous peak, admiring the views of the fastest economic growth since 1984, the best start to a bull market and the record-breaking quarter of earnings growth, it’s wise to remember that not too long ago we began our uphill journey from the depths of the COVID-19 ravine. Often, the best views come after the hardest climbs.

Robust engagement with company management can be key in sparking catalysts that unlock shareholder value and potentially lead to better returns over the longer term, according to Franklin Mutual Series Environmental, Social and Governance (ESG) Ambassador Tim Rankin.

Chief Economist Scott Brown discusses the latest market data.

You’re probably familiar with Tax Freedom Day®, which is April 16th this year for the country, according to The Tax Foundation. But are you aware of FICA Freedom Day? It’s the date when that first check arrives absent FICA deductions for Social Security.

Gold’s average daily trading volume for the one-year period was $183 billion, compared to the S&P 500 with nearly $235 billion. That dollar amount is enough to beat currency swaps as well as all government and corporate debt.

A few months ago in Xi’s Big Mistake, I said Beijing risked killing the entrepreneurial activity that had spurred the country’s rapid growth. As we learn more, this is looking less like a mistake and more like a mistakenly-conceived plan.

The country’s leadership has designed a new development model, based on a ‘common prosperity’ philosophy, aimed at modernising the economy by improving the country’s future demographic profile via lowering inequality and promoting sustainable, even if slower, GDP growth which is both less dependent on financial leverage and in harmony with nature.

The Berlin Wall came down 32 years ago this November, ushering in a new era of freedom and opportunity. But judging from the results of a recent local election, it looks as if socialism is trying to stage something of a comeback in Germany’s capital city.

A three-party coalition could soon govern Germany for the first time in the country’s history following recent elections. Matthias Hoppe, senior vice president and portfolio manager, Franklin Templeton Investment Solutions, believes uncertainty caused by coalition talks is likely to increase volatility in Europe’s financial markets, but changing a conservative attitude to public spending is the real challenge for a new government as Germany wrestles with the reality of increasing macro-economic imbalances and a stated aim to achieve carbon neutrality by 2045.

We have become famous (or infamous) regarding our views that there is a bubble in long-duration assets. In this report, we investigate what’s causing such widespread bubbles, their potential effects on the overall economy, and the interesting investment opportunities resulting from the bubble’s misallocation of capital.

Executive pay is a powerful motivating factor. But investors need to consider whether executive pay incentives are fully aligned with the goals of the business. We find that companies with meaningful ESG goals embedded in their executive compensation schemes tend to have a better understanding of the ESG factors that are material to their business, use specific key performance indicators (KPIs) and are more likely to achieve them.

As the globe enters the waning months of 2021, concerns over inflation, the delta variant of COVID-19 and the unwinding of easy-money policies loom large for markets. Despite this, we believe that the business cycle is still in a recovery phase, although it’s maturing. We expect more cyclical upside for economic growth outside the U.S. in the months ahead, allowing market leadership to rotate toward the rest of the world.

Canada's election yielded no changes, leaving housing as the key risk to watch.

The German election resulted in change in party leadership, but market impact should be limited, according to David Zahn, our Head of European Fixed Income. He shares an overview of the election implications.

The stage looks set for a taper without any tantrums.

The spillover from the property sector to the broader economy could be significant.

Investors and financial advisors alike want to understand the fascinating trends that are transforming the investment industry.

Today, I want to show you how richly valued the market is and then review some of the top risks that could force it downward. Like those sandpiles I talk about, we don’t know exactly what will trigger a collapse. We know something will do it. Sandpiles don’t grow to infinity.

Emerging markets have evolved over the last few decades. Today, Asia is the core of growth, rising consumption and innovation within emerging markets, and world class industry leaders in innovation have changed the game of investing.

Prior to today, the S&P 500 index was down four days in a row, and many market observers are blaming China, specifically the recent news about Evergrande, a major Chinese real estate company that looks to be heading to default on its loans.

Senior Sovereign Analyst Bo Zhuang clears up some key questions about China's regulatory crackdown.

The Fed governors will soon decide when and how to taper asset purchases.

Review the latest Weekly Headings by CIO Larry Adam.

When diversification is a core principle for successful investing, what stops women from offering their talents in finance and investment careers?

On the latest edition of Market Week in Review, Chief Investment Strategist Erik Ristuben and Head of Portfolio & Business Consulting Sophie Antal Gilbert discussed U.S. consumer prices and wages, key factors impacting U.S. small businesses and home sales in China.

It’s becoming more and more difficult to be in the fossil fuel business. On both sides of the Atlantic, lawmakers and unelected bureaucrats are turning up the heat, so to speak, on companies over the issue of climate change.