“After being fairly bullish overall in our multi-asset portfolios at Franklin Templeton Solutions, we have retrenched a bit and have taken more of a buckle-up attitude as we move into the fourth quarter, with the US elections and other events happening in the world.”
However, Ed Perks, CIO of Franklin Templeton Equity thinks the US is far more resilient and stable than Europe presently, despite the upcoming presidential election. In fact, Perks reckons the US election is not even among the top five issues that companies seem most concerned about.
“Companies are still very focused on currency trends that are impacting their business as well as on margin pressures, whether it’s cost inflation through wage growth or price deflation and the compressing of margins,” he said. “They are still very focused on Brexit and its potential impact on eurozone growth and their businesses in the region. But generally, the US election has fallen a bit more into the background.”
“Ultimately, as we get closer to the election in November and certainly during third-quarter earnings season, the election will come into focus a bit more,” Perks added. “Whatever the outcome, even if we get some volatility like we did following Brexit, I think the election will prove to be something the markets will be able to digest and move past.”
