Market Volatility

Amid steady economic growth and healthy corporate fundamentals, Franklin Templeton Investment Solutions sees reasons to prefer equities over fixed income as 2026 begins.

The removal of Venezuela’s President Nicolás Maduro has materially improved the country’s outlook, according to Franklin Templeton Fixed Income Emerging Market Debt Director Nicholas Hardingham. He believes this action helps alleviate a long-standing political and economic impasse that had prevented reform, external engagement, and debt resolution.

Venezuela is a high-optionality oil-and-gas story, but the pathway from reserves to reliable exports runs through governance, contracts and sustained capital investment.

Despite recent geopolitical developments and continued uncertainty from US tariff policy, Templeton Global Macro believes global growth should remain resilient. This month’s Global Macro Insights provides updates from around the world as well as the team’s views on current opportunities and risks.

The probability of strong earnings and growth-friendly policies should make emerging markets attractive to investors in 2026, in the view of Templeton Global Investments.

The US action in Venezuela opens up a complicated chapter ahead involving potential debt restructuring, energy and mining development, and geopolitical negotiation.