Franklin Templeton / Templeton Global Macro Research

Franklin Templeton’s global macro outlook centers on the profound economic implications of geopolitical fragmentation and the ongoing 'global rewiring' of trade architectures. Amidst an environment characterized by Middle Eastern instability, elevated oil prices, and a moderated IMF global growth forecast of 3.1% for 2026, the firm highlights the necessity of navigating persistent central bank hawkishness. A core pillar of their thesis is the anticipation of long-term US Dollar depreciation, which informs their strategic preference for diversified asset allocation. Consequently, the firm maintains a constructive stance on selective emerging market assets, particularly within Asia and Latin America, where positive fundamental tailwinds persist. By prioritizing markets with strong internal dynamics, Franklin Templeton seeks to capture value despite the systemic downside risks posed by current global geopolitical shifts.