State of the Markets Q3 2018

In the latest State of the Markets I am joined by my colleague Liz Bouthillier, Head of Inside Sales, to discuss some of the major themes that impacted global equity and currency markets in the second quarter of the year. I also review some of the current trends we are watching and how we are positioning our portfolios going forward.

The Quarter in Review

Though trade tensions and slower growth have been major stories, the second quarter of the year was defined by a bounce-back in markets. Some of the key themes of the quarter include the continued outperformance of stocks over bonds, the divergence between developed markets and emerging markets, and the resurgence of the Canadian market.

?Looking ahead

The potential outcome of trade wars and protectionist policies could impact businesses and consumers alike. Despite these risks, corporate profits remain strong and there are still fundamentals driving markets. We still believe that equities will provide strong returns in the medium term, especially in select regional markets where we are adding exposure. 

Franklin Templeton Investments Canada is a business name used by Franklin Templeton Investments Corp.

Stephen Lingard’s comments, opinions and analyses are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. Because market and economic conditions are subject to rapid change, comments, opinions and analyses are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy.

Important Legal Information

All investments involve risks, including the possible loss of principal. Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging markets, of which frontier markets are a subset, 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. Because these frameworks are typically even less developed in frontier markets, as well as various factors including the increased potential for extreme price volatility, illiquidity, trade barriers and exchange controls, the risks associated with emerging markets are magnified in frontier markets. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.