Investment Adventures in Emerging Markets

Local Investors Discover Brazilian Stocks
Latin America

Local Investors Discover Brazilian Stocks

The COVID-19 pandemic has been devastating for Brazil, but heavy government spending and monetary policy easing have helped bring some stability to the economy. Claus Born, senior vice president and institutional product specialist, Franklin Templeton Emerging Markets Equity, shares some thoughts as to why local investors have been supporting its market in recent days, too.

COVID-19: A Positive Tipping Point for Some Brazilian Banks?
Latin America

COVID-19: A Positive Tipping Point for Some Brazilian Banks?

The coronavirus pandemic is hurting Brazilian banks in the near term, but is the outlook entirely grim? Franklin Templeton Emerging Markets Equity’s Gustavo Stenzel explains why certain banks could emerge from the outbreak stronger relative to a new pack of financial technology competitors.

Brazil Takes Big Reform Step
Latin America

Brazil Takes Big Reform Step

Pension funding has been an issue in many parts of the world and has certainly been a hot topic in Brazil. President Jair Bolsonaro’s election ignited market optimism on promises to reform pensions to get Brazil’s fiscal house on a firmer footing. The probability of this being delivered has increased considerably after approval of a new pension reform bill in Brazil’s lower Congress. Franklin Templeton Emerging Markets Equity’s Gustavo Stenzel and Marcos Mundim weigh in on what the breakthrough means for the country, and for investors.

Emerging Markets Outpace Developed Markets in the Final Quarter of 2018
Perspective

Emerging Markets Outpace Developed Markets in the Final Quarter of 2018

Numerous uncertainties weighed on investor sentiment in 2018 and led to a down year for emerging markets overall, although the fourth quarter saw some outperformance versus developed markets. Manraj Sekhon, CIO of Franklin Templeton Emerging Markets Equity, and Chetan Sehgal, senior managing director and director of portfolio management, present the team’s overview of the emerging-markets universe in the fourth quarter of 2018, along with their current outlook.

What’s Next for President-Elect Bolsonaro in Brazil?
Latin America

What’s Next for President-Elect Bolsonaro in Brazil?

Jair Bolsonaro emerged victorious in Brazil’s presidential election, an outcome that markets had largely priced in, according to Frederico Sampaio, chief investment officer, Franklin Templeton Emerging Markets Equity Brazil. He says Bolsonaro now has his work cut out for him in addressing an economic recession, closing a fiscal deficit and stamping out corruption.

Not All Emerging Markets Are Equal
Perspective

Not All Emerging Markets Are Equal

“We find a disconnect between the negative sentiment permeating the market and positive EM equity fundamentals, including rising cash flows, improving capital-allocation discipline, corporate deleveraging, healthy earnings and discounted valuations.” - Manraj Sekhon and Chetan Sehgal, Franklin Templeton Emerging Markets Equity

August Recap and Outlook: Finding Opportunities in Volatility
Perspective

August Recap and Outlook: Finding Opportunities in Volatility

Market volatility marked the month of August, with sharp declines in the Turkish lira and Argentine peso souring investor sentiment for emerging markets overall. Manraj Sekhon, CIO of Franklin Templeton Emerging Markets Equity, and Chetan Sehgal, senior managing director and director of portfolio management, present the team’s overview of the emerging-markets universe in August and why they don’t see the asset class heading for a severe crisis.

Mexico’s AMLO: A New Kind of Populist
Asia

Mexico’s AMLO: A New Kind of Populist

The victory of leftist candidate Andrés Manuel López Obrador in Mexico’s presidential election shows populism can come in a variety of forms. Franklin Templeton Emerging Markets Equity’s Santiago Petri and Gustavo Stenzel offer their thoughts on what’s next for Mexico and its new president.

Argentina Emerges
Latin America

Argentina Emerges

While Argentina’s economy has faced some challenges of late, some good news came this month for investors when index provider MSCI announced the country would be upgraded to emerging-market status. Franklin Templeton Emerging Markets Equity’s Santiago Petri—who is based in Argentina—weighs in on the situation there.

Further Reforms Could Lead Latin American Economies to Become Bigger Growth Players
Latin America

Further Reforms Could Lead Latin American Economies to Become Bigger Growth Players

“We think Latin America’s two largest economies, Brazil and Mexico, could continue to benefit from economic growth and reforms… However, we believe further reforms are needed, and upcoming elections in those countries could influence our outlook.” Gustavo Stenzel, Franklin Templeton Emerging Markets Equity

Back to Brazil
Perspective

Back to Brazil

"Brazil has only recently emerged from a prolonged recession and its challenges, including corruption scandals within the government and corporations, are certainly well known. However, Brazil’s economy is large and holds many potential opportunities for investors amid a backdrop of improving fundamentals.” - Mark Mobius

Brazil and Other Bright Spots in Latin America

Brazil and Other Bright Spots in Latin America

In general, we think fears about economic relations between the United States and Mexico completely breaking down are probably overdone.