Franklin Templeton's Andrew Canobi highlights perception versus reality
The 1999 cult movie Matrix explores the theme of perception versus reality in this world.
"A bit like financial markets today," says Andrew Canobi, Franklin Templeton Fixed Income portfolio manager.
Canobi has analysed Australia's second quarter GDP numbers to draw parallels between the current state of...
Following a sustained period of higher inflation, complicated more recently by the spike in commodity prices associated with the Russian invasion of Ukraine, central banks (CBs) are increasing interest rates. For instance, the Federal Reserve has ~7 rate hikes priced in between now and the end of 2022, with...
In a market where risks have risen, diversifying within asset classes, particularly defensive asset classes, is just as important as having a sound mix of growth and defensive assets, writes Justin Tyler, Director, Daintree Capital.
Diversification is a central strategy used by asset allocators to lower a portfolio’s risk and...
Part of an insight article from Ardea Investment Management.
1Q22 saw a historically large sell-off of bonds. A lot of policy tightening is now priced in but there are still substantial risks to the outlook for bonds.
Historically poor quarter for bonds
Sovereign bonds underperformed significantly in March, capping off an...
Global asset manager Janus Henderson has outstanding research capabilities. This article gives us insight into their thinking about investing in investment-grade BBB rated securities versus sub-investment-grade BB rated securities. It also explains some key educational terms and includes a glossary. We suggest you take your time reading the article...
From Matt Simpson, Senior Market Analyst, City Index
The RBA held interest rates at 3.6%
This breaks a record streak of 10 consecutive hikes totalling 350bp
Statement reference that policy ‘may’ need to be tightened (previously ‘will’ be tightened)
AUD/USD pulls back from yesterday’s highs, but a weaker USD...
The Franklin Templeton Fixed Income team has issued its fourth-quarter 2023 outlook, ahead of the US Federal Reserve's policy decision.
The Franklin Templeton Fixed Income team conducts a team-wide quarterly research and strategy Forum driven by independent macroeconomic, fundamental sector, and quantitative research, to explore and collaborate on economic and...
Central Banks Yet To Win Battle Against Inflation, Interest Rate Hikes Likely To Continue
Global economic activity has proved stronger than seemed likely at the start of the year, given the scale of supply-side shocks that had fuelled inflation and eaten into disposable incomes over the previous 12 months. Several...
I recently had an email from Jeff, asking why the value in the iShares Inflation Linked Bond ETF had dropped when inflation is rising.
There are a couple of factors at play in explaining the loss in value.
1. 100% investment in government bonds
The ETF invests in about 13 government...
