Investment Tips

As geopolitical tensions escalate across the globe, our UK Equity team provides its insights into Russia’s invasion of Ukraine and the implications for UK-listed companies.

As western governments advise citizens to leave Ukraine, we consider how investors can ride out geopolitical events involving conflict. Dan Kemp, Morningstar Investment Management global chief investment officer, says there are four ways investors typically handle geopolitical risks. Some of them are wiser than others.

Kim Catechis, Investment Strategist for the Franklin Templeton Investment Institute, recently shared his thoughts around the situation in Ukraine and the implications for the global economy and capital markets. Here are some highlights of his views.

The rapid escalation between Russia and Ukraine has dramatically shifted investor sentiment. We are witnessing a meaningful setback in key financial markets, prompting volatility and negative speculation. This is normal amid uncertainty, but it is worth stepping back to understand the fundamentals of the situation.

Investors should assess risk relative to their goals—and anything that might interfere with attaining those goals must be addressed. Market downturns obviously create friction in this sense. Having a robust portfolio rarely shows its benefits in a strong market, but it is critical in a down market.

Despite the pressures on household finances, there are encouraging signs for continued economic growth—and attractive market valuations, according to Franklin UK Equity’s Ben Russon. He shares his latest UK equity outlook.

Thoughts on recent global market volatility and potential central bank actions from our EMEA Investment Strategist, Kim Catechis, Franklin Templeton Fixed Income’s David Zahn, and Martin Currie’s Zehrid Osmani.

Thoughts on recent global market volatility and potential central bank actions from our EMEA Investment Strategist, Kim Catechis, Franklin Templeton Fixed Income’s David Zahn, and Martin Currie’s Zehrid Osmani.

When considering portfolio allocation, it’s important to keep in mind the wide dispersion of returns among economies. Dina Ting, Franklin Templeton’s Head of Global Index Portfolio Management, assesses the recent dislocation among global equity returns, with a look at one notable inflation outlier—Japan.

Disagreements about the outlook for inflation in the new year and beyond continue. Stephen Dover, Head of the Franklin Templeton Investment Institute, recently led a lively debate on the topic with Western Asset’s John Bellows and Franklin Templeton Fixed Income’s Sonal Desai.