FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 07/12/21

On average, stocks in “value” funds have materially lower price/earnings ratios than “growth” funds, the justification for the latter’s higher P/E being that they produce higher earnings. They also appear to be more predictable. Most of the US and mu...

Ten-year government bond yields mostly fell in June, with those for Australia dropping by more than 16 basis points to 1.48%. The second biggest move came from the U.S. 10-year Treasury mid-yield, which ended June nearly 15 basis points lower at 1.44%, its lowest level since early Mar...

This market has been like a roller coaster since Memorial Day. The sector rotation has been the biggest churn. The biggest concern at the moment for longer-term investors, and in particular retirees, is the possibility of higher inflation on the horizon. The housing market, the jo...

Having brushed off hyper-inflation rants in prior years, I started giving inflation a lot of coverage in the last year because I believed inflation was likely to become the driver in our economic malaise in the months ahead. High inflation is a taskmaster that will not be ignored, not...

Treasuries are expensive, but near-term indicators such as technicals, sentiment, and seasonality suggest there’s further to go. We could possibly say the same about equities and property as valuations reach unnervingly familiar levels amid the wash of global liquidity. Com...

Current fixed income yields are 4% or more below average realized returns over the last 40 years. The typical 60/40 equity/fixed income portfolio will likely experience reduced return and increased risk. Portfolio optimization suggests the standard aggregate bond fund is no longer...

Over time, the long-term relationship between the yield on the 10-year Treasury note and inflation, represented by the core Consumer Price Index, tends to be relatively stable. At various junctures, this relationship may not hold; for example, when market shocks drive up demand for sa...

Strategas President Nicholas Bohnsack breaks down the recent move in Treasury rates before getting into a few 2H21 and 2022 outlook items. While he remains bullish on equities, he says he wouldn’t be surprised to see some volatility on the horizon. The organic growth driver...

EUR rates shrugged the new ECB policy goal, perhaps because it was well-telegraphed and, arguably, already acted upon in recent years. Marginally lower real rates may ensue. The global flattening might run into some profit-taking today, and faces long-end US supply next week. But ...

The pandemic disrupted a well-tuned but perhaps overly optimized global economy and time-shifted the production and consumption of various goods. Fed officials have told us repeatedly they are not worried about inflation; they believe it is transitory. We are a bit less dismissive of ...