Latest news with #StephenDover
Yahoo
21-05-2025
- Business
- Yahoo
Most US investors are 'underweight overseas,' strategist says
US stocks (^DJI, ^IXIC, ^GSPC) slump lower into negative territory Wednesday morning after showing signs that the market rally, fueled by last week's US-China trade war truce, is beginning to stall. JPMorgan Chase & Co. (JPM) CEO Jamie Dimon warned of an "extraordinary amount of complacency" in markets at the bank's annual investor day on Monday. The Informed Momentum Company CIO Travis Prentice and Franklin Templeton Chief Market Strategist and Head of Franklin Templeton Investment Institute, Stephen Dover, join The Morning Brief for a discussion on where they see the market broadening out, especially in foreign companies and international markets. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. It is time now for today's strategy session. US stocks opening in the red after snapping six days of gains with the rising bond yields sparked by deficit concerns weighing on risk sentiments. So, our investors still too complacent amid the recent market calm. Joining us now on this, we've got Stephen Dover, Franklin Templeton, Chief Market Strategist, along with Travis Prentice, CIO of the Informed Momentum Company. Thank you both so much for being here this morning. Stephen, I want to start off the conversation with you because we are seeing a little bit of so-called market complacency according to our sources here. What should investors do to hedge against that uncertainty? Where do you see continued opportunity? We primarily are focusing on the broadening of the market. Um, we had a very concentrated market the last few years. That's broadened out even year to date, and we see a further broadening. And, uh, to to push that a little further, we would advise investors to go abroad. Uh, we see a lot more opportunity overseas versus to the US than we have over the last, uh, certainly four or five or even 10 years. And so, with that in mind as you're thinking about the strategy and how that kind of sets up for where investors should be kind of placing their portfolio and and weighing their portfolio. I mean, where are you kind of looking at this activity and initiating any type of trade today on this? So our, um, it it's interesting. We just had our CIOs meet and we said something that probably, you know, you don't really like necessarily to hear on the news because it's not aggressive, but we did call it aggressively neutral. That right now the market, we think the market's going to be pretty much sideways for the rest of the year. So it's an opportunity to upgrade in quality and broaden and probably look at where you're pretty far from the benchmark or pretty far from neutral and think about whether you want to move in that area. Most US investors and indeed many foreign investors are actually underweight overseas. Um, they're underweight and more broadly diversified, and that's where we look. Specifically, in terms of sectors, maybe a barbell type of approach where you're looking at growth, um, which would be the big tech firms, and then you're also looking at quality, uh, particularly quality, uh, um, dividends. And and then just lastly, uh, you know, what to avoid? You probably want to, uh, really look at avoiding, um, perhaps energy as prices drop. And you're going to have to be careful with industrials and consumer discretionary as the tariffs roll in. I think specific companies could do well, but as groups they're probably going to be challenged. And, uh, Stephen, I want to bring you into the conversation because one thing that I've been thinking about here is Travis. I'm so sorry. I want to bring you into the conversation because I know that you sent over some thoughts about international plays as well, and it was interesting. You mentioned France, Canada, China, Europe overall, Europe financials, a lot of different opportunity and only one or two things related specifically to the US. Is that a signal of what you're hearing from clients right now about demand for those international opportunities? Yeah, well, I think our clients, um, to echo what what Steve said a little bit is to stay diversified in this kind of tumultuous market environment. And so I certainly part of that is diversified by styles, but also diversified by geographic exposure. So, you know, we don't think it's an either or, you know, US or or non-US. We think it's all of the above. And specifically having a a a style of investing like momentum that picks up on trends kind of no matter where they emanate. I think if you look at the world stock by stock, opportunity by opportunity, it is a world of opportunity, and certainly we see some very strong trends, uh, as you laid out in Europe, uh, even Chinese biotech. Uh, we're seeing some emergence of Chinese biotech companies with some of the deals that we've seen lately. So there is tremendous opportunity even in these dislocated market environments. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
19-05-2025
- Business
- Bloomberg
Stocks Edge Lower After US Downgrade
"Bloomberg Markets" follows the market moves across every global asset class and discusses the biggest issues for Wall Street. Today's guests; Franklin Templeton Research Institute Head Stephen Dover, Unison Advisors Founder Nir Kaissar, and Bloomberg's Katherine Doherty. (Source: Bloomberg)
France 24
03-05-2025
- Business
- France 24
Trump's next 100 days: Now comes the hard part
But the job gets trickier now for the self-styled dealmaker-in-chief, who must corral fractious Republicans on Capitol Hill to anchor his domestic policies in legislation that can cement a lasting legacy. "Trump's first 100 days were remarkable for their pace and impact. Now comes the hard part," Stephen Dover, chief market strategist and head of the Franklin Templeton Institute, said in a memo to investors. "The next 100 days will shift the focus to the challenges of passing legislation while simultaneously addressing deficit reduction. Congress must act, which requires building legislative coalitions." In a dizzying first three months, Trump wielded executive power like no other modern president, signing more than 140 orders on immigration, culture war issues and slashing the federal bureaucracy. But the unilateral authority of the Oval Office has its limits and much of the reform Trump wants to enact -- particularly anything involving spending public money -- requires laws to be passed by Congress. Trump's political capital will be put to the test as he aims to shepherd his sprawling agenda on tax, border security and energy production through the House and Senate. Complicating Trump's task is his receding popularity, with the polls flashing warning signs amid economic uncertainty and misgivings over his handling of immigration and international trade. Brinkmanship Executive orders signed without the involvement of Congress can be undone by any president. They are also vulnerable to legal and constitutional challenges, as Trump has discovered in dozens of rulings that blocked his policies early in his presidency. A more lasting impact, say analysts, will require the kind of political brinkmanship and consensus-building that haven't been necessary so far. The author of "The Art of the Deal" doesn't have a great record of getting contentious legislation through his divided party. In his 2017-21 term, he passed the Abraham Accords, fostering peace between Israel and several of its neighbors, and celebrated a trade deal with Canada that has since been obliterated by his tariffs. But he failed to repeal the Affordable Care Act, or Obamacare -- a key priority -- and, despite much fanfare over summits in Singapore and Hanoi, was unable to ink any kind of deal with North Korea's Kim Jong Un. When it comes to uniting around a common cause, his lawmakers in Congress haven't fared much better, getting just five bills into law in Trump's first 100 days, the lowest number in generations. Republicans set a deadline of July 4 to pass the president's agenda -- led by an extension of his 2017 tax cuts and fulfilling a campaign pledge to eliminate levies on tips, overtime and Social Security payments. 'A lot trickier' The slim Republican majorities in both chambers will require almost perfect unity. But conservatives won't back the tax cuts -- which have an estimated price tag of around $5 trillion over 10 years -- without deep reductions in spending. Moderates with tough reelection fights in next year's midterms say they won't support the likely evisceration of the Medicaid health insurance program for low-income families that this would entail. Political consultant and former Senate aide Andrew Koneschusky, a key player in negotiations over the 2017 tax cuts, expects Trump's next 100 days to be "a lot trickier." "When it comes to tax bills, the ultimate adult in the room is math. You can't break the laws of mathematics, no matter how much politicians might want to," he told AFP. "It's going to be extremely tricky for the numbers to add up in a way that satisfies everyone in the Republican caucus." Meanwhile Trump is up against the clock. The battle for the House majority in 2026 will likely come down to a few swing districts and the president could easily see his ability to shepherd legislation through Congress curtailed. Trump is relying on an arcane Senate procedure called "reconciliation" that means, given certain conditions are satisfied, he won't need Democratic support to pass his priorities -- which is just as well. House Minority Leader Hakeem Jeffries has called Trump's agenda "unconscionable" and "un-American," vowing to do everything Democrats can to "bury it in the ground, never to rise again."
