I suppose building on last week's magazine that contained article links to a weakening job market, this week's magazine contains a number of links surrounding the emerging markets correction this past week. Are these data points a sign of a global slowdown? The downdraft in the emerging markets did spill over into the U.S. market with the Dow Jones Industrial Average falling more than 300 points. In a recent article by Michael Hasenstab, Ph.D., Executive Vice President, Chief Investment Officer Global Bonds for Franklin Templeton Fixed Income Group®, the article lead-in noted,
"When the masses are against you, it’s hard to stand your ground. Going against the crowd is familiar turf for Michael Hasenstab...and certainly knows the virtue of patience. He has staunchly defended his investment theses over the years, tuning out the naysayers and market noise time and again. Ireland, a country that only a few short years ago, few investors wanted to touch, is a case in point. It’s become one of the biggest turnaround stories emerging from Europe’s debt crisis. Hasenstab continues to stress the importance of taking a long-term view and standing your ground (non U.S. investor link): , and says investors should exercise patience not only in other parts of Europe today, but also in select emerging markets, including China (empahsis added.)"
After the U.S. equity markets generated such strong returns last year, it is not surprising a correction is before us. However, we still believe the correction, or better yet, consolidation, likely will not lead to a full blown bear market. With that, below is the link to this weeks magazine.
Disclosure: Long Templeton Global Total Return Fund (TTRZX)