Our CIOs' Global Investment Outlook expands on navigating periods of uncertainty and volatility.
Looking at the economic and market outlook for 2020 just a few months ago, there’s no doubt times have changed. The spread of the coronavirus dealt a severe, unexpected shock that impacted people—and markets—around the globe. Many investors are wondering how to navigate the supply and demand shocks, and questioning, where do we go from here? While clearly the scope and reach of the coronavirus crisis is unprecedented, our senior investment leaders have plenty of experience navigating periods of uncertainty and volatility. They outline how they see a recovery taking shape once the crisis passes and offer some investment insights.
December 31, 2019–March 27, 2020
Sources: World Health Organization, Bloomberg. Franklin Templeton Capital Market Insights Group, MSCI, Macrobond. Indexes are unmanaged, and one cannot invest directly in an index. Past performance is not an indicator or guarantee of future performance. Important data provider notices and terms available at www.franklintempletondatasources.com. For illustrative purposes only and not representative of the performance or portfolio composition of any Franklin Templeton fund.
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. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging market countries 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. Such investments could experience significant price volatility in any given year. High yields reflect the higher credit risk associated with these lower-rated securities and, in some cases, the lower market prices for these instruments. Interest rate movements may affect the share price and yield. Treasuries, if held to maturity, offer a fixed rate of return and fixed principal value; their interest payments and principal are guaranteed. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
Diversification does not guarantee profits or protect against risk of loss.