Market Volatility

This quarterly deep dive from the Franklin Templeton Fixed Income team analyses emerging market performance to try to understand whether strong, positive cycles offer clues to more efficient allocations across hard-currency and local-currency debt.

Global markets face a more stagflationary backdrop as inflation pressures intensify, growth diverges and central banks stay on alert. Tech and artificial intelligence investment continue to support the United States, Europe wrestles with a fresh inflation shock, and Japan shows resilience. But rising costs, supply strains and policy uncertainty cloud the outlook.

Royce Investment Partners: In the midst of a rally, Co-CIO Francis Gannon looks at how valuations for the small- and micro-cap indexes compare to large-cap—and why earnings remain key to market leadership.

In this month’s Allocation Views, Franklin Templeton Investment Solutions is optimistic about equities in the month ahead amid strong corporate fundamentals and resilient growth.

As the traditional buyer base for US Treasuries shifts toward more price-sensitive, yield-dependent investors, rising long-end yields reflect a structural market adjustment, according to Western Asset.

The latest Emerging Markets Insights discusses companies across various sectors that have expressed cautious optimism for the second half of 2026 despite ongoing geopolitical pressures and higher input costs. Templeton Global Investments highlight what they observed at a recently attended summit.