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CONTRIBUTORS

Matthew Moberg

Portfolio Manager,
Franklin Equity Group
United States

Preview

For the past decade, I have written memos to capture my views on our highest conviction ideas and thoughts on the coming quarters. To date, I’ve used memos like this one to organize my thoughts regarding what the Franklin Innovation Team is seeing in the marketplace and to record our expectations for how these ideas may evolve. This piece captures eight ideas that offer you a glimpse into our thinking on a number of themes that matter to us:

  1. History suggests that the period immediately after a pandemic is met with very good economic growth.
  2. We expect a stock pickers’ market in innovation: Losers finally fail.
  3. 2023 will be the year of the chief operating officer.
  4. Oil is dead. Long live oil.
  5. The US Inflation Reduction Act (IRA) signed in 2022 is a likely accelerant of energy transformation. Other countries will need to respond.
  6. Payments: A button is not enough. Payments are the fourth leg of profitability for internet websites.
  7. mRNA drugs move beyond COVID-19.
  8. 2023 and 2024 may see one of the largest drug launches in history.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.

Investments in fast-growing industries like the technology sector (which historically has been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments.

The opinions are intended solely to provide insight into how securities are analyzed. The information provided is not a recommendation or individual investment advice for any particular security, strategy, or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio. This is not a complete analysis of every material fact regarding any industry, security or investment and should not be viewed as an investment recommendation. This is intended to provide insight into the portfolio selection and research process. Factual statements are taken from sources considered reliable but have not been independently verified for completeness or accuracy. These opinions may not be relied upon as investment advice or as an offer for any particular security.

Any companies and/or case studies referenced herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised by Franklin Templeton. The information provided is not a recommendation or individual investment advice for any particular security, strategy, or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio. Past performance does not guarantee future results.

IMPORTANT LEGAL INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market.

Data from third party sources may have been used in the preparation of this material and Franklin Templeton Investments (“FTI”) has not independently verified, validated or audited such data. FTI accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments opinions and analyses in the material is at the sole discretion of the user.

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