Why stay overweight US equities when interest rates could still rise? And are higher bond yields finally creating opportunities for investors?

Michael Browne and Oliver Wallin unpack Franklin Templeton’s latest asset allocation views, including the case for US equities, growing opportunities in government bonds and how the AI investment trade is broadening beyond the biggest technology companies.

They also discuss emerging markets, the outlook for UK bonds, Australia’s deteriorating investment picture and the biggest risks to current portfolio positioning.

Andy Burnham is the UK's new Prime Minister. What does that mean for markets and investment?

The UK has entered a new political era, but the questions facing investors remain the same. Can the new government deliver stronger growth while maintaining fiscal discipline? Will policy shift in a way that changes the outlook for inflation, interest rates and UK assets?

In this special episode of Macro Moments, Michael Browne is joined by David Zahn, Head of European Fixed Income, and Jo Rands, Portfolio Manager, UK Equities, to examine the investment implications of Andy Burnham's premiership.

Together, they explore the government's economic priorities, the future of the UK's fiscal rules, how markets could respond to a more interventionist agenda, and what the new political landscape means for growth, bonds, equities and investors.

Listen to the conversation and discover what Andy Burnham's government could mean for the UK economy—and what investors should be watching next.

In this bonus episode of Macro moments, recorded straight after the main conversation, Stuart Kirk, author of the Financial Times' Skin in the Game column, Michael Browne (Franklin Templeton Institute) and Oliver Wallin (Franklin Templeton Investment Solutions) tackle the remaining investor questions. 

They explore whether a £1 million pension is enough for retirement, why investors may not need to reduce equity exposure as they get older, and if markets are overestimating US interest rate cuts. It also looks at AI’s impact on jobs and growth, and takes on the active versus passive investing debate.

Topics include:

• Is a £1 million pension pot enough for retirement?

• Why retirement doesn't necessarily mean selling your equities

• Are markets overestimating the likelihood of US interest rate cuts?

• What productivity is telling us about the US economy

• Will AI destroy jobs—or create the next wave of economic growth?

• Why active versus passive investing isn't an either-or decision

• How market dispersion creates opportunities for active managers

• Why strategic asset allocation is itself a form of active management

This bonus episode offers practical investment insights with a broad discussion of the macroeconomic and technological forces shaping today's markets, offering investors a fresh perspective on navigating uncertainty while positioning portfolios for long-term growth.

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In this episode of Macro moments, Oliver Wallin, Solutions Portfolio Manager at Franklin Templeton, applies an institutional portfolio construction framework to the personal pension portfolio of Stuart Kirk; author of the Financial Times’ Skin in the Game column. Using the same analytical lens employed for institutional portfolios, the discussion evaluates asset allocation, regional exposures, portfolio risks and return assumptions, assessing whether Stuart’s portfolio is on track to reach its £1m target by 2032.

The portfolio review becomes a springboard for a broader debate on the investment landscape in 2026. Hosting the discussion, the Franklin Templeton Institute’s Michael Browne explores whether today’s markets are experiencing another bubble or a genuine structural shift, driven by unprecedented investment in artificial intelligence and digital infrastructure. The conversation examines US exceptionalism, opportunities across Europe, Japan and emerging markets, the role of active positioning and whether investors should be embracing or challenging conventional market narratives.

Topics include:

• Applying institutional portfolio analysis to a real-world pension portfolio

• Is AI creating a bubble or a productivity revolution?

• The investment implication of AI infrastructure spending 

• US exceptionalism and global market opportunities

• Strategic asset allocation and benchmark-relative risk

• Active positioning, market timing and portfolio construction

• Diversification and unintended portfolio risks

• The risks investors should actually be watching

This episode combines real-world portfolio analysis with a wide-ranging discussion on one of the defining investment questions of today: is AI driving a speculative boom, or laying the foundations for the next phase of economic growth?

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Franklin Templeton is your trusted partner for what’s ahead™.

We are a global asset manager providing investment solutions across equities, fixed income, multi-asset, ETFs, and private markets. Our experts share insights on market trends, economic outlooks, asset allocation, and portfolio strategy to help investors navigate changing markets.

Follow for research-driven perspectives, investment insights, and market updates for financial advisors, institutional investors, and individuals.

Emerging Markets in Focus: Geopolitics, AI Growth & Investment Opportunities

For the debut of Macro Moments monthly webinar series, Global Investment Strategist Michael Browne hosts a discussion with a distinguished panel from Franklin Templeton. He is joined by Oliver Wallin, Solutions Portfolio Manager; Elias Elias, CFA, Client Portfolio Manager; and Marcus Weyerer, CFA, Senior ETF Investment Strategist EMEA. Adding further depth to the conversation is regular contributor Mohieddine (Dino) Kronfol, CIO of Global Sukuk and MENA Fixed Income.

The panel provides an in-depth analysis of the changing emerging markets environment, exploring how geopolitical conflicts and energy-related risks impact global trade, commodities, investor sentiment, and overall market stability.     

They also explore:

• Reshaping of global supply chains due to geopolitical conflict

• Impact of energy disruptions on inflation and emerging markets

• AI, semiconductors, and digital infrastructure as growth drivers

• Opportunities in Korea, Taiwan, and India

• Risks from persistent inflation, fiscal imbalances, and currency volatility

• Monetary policy's influence on capital flows and investor behavior

• Importance of active management and selective sector exposure

In summary, this episode expresses an outlook of cautious optimism, highlighting the semiconductor sector as a primary avenue for investment. The group stresses that navigating modern market complexities requires a steadfast commitment to thorough risk evaluation and strategic diversification. 

Come along to examine the intersection of technology and global politics, discovering how they are reshaping emerging markets and identifying the most promising future prospects.

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Explore Franklin Templeton's latest insights, market perspectives, investment solutions, and educational resources.

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Follow Franklin Templeton for market updates, expert analysis, thought leadership, and investment insights:

• LinkedIn: https://www.linkedin.com/company/franklin-templeton/

• YouTube: https://www.youtube.com/@FranklnTempletn

• X: https://x.com/FTI_Global

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