Macro moments

Are US small-cap stocks being underestimated?In this special edition of Macro moments, Michael Browne is joined by Francis Gannon, Co-Chief Investment Officer of Royce Investment Partners, to debate the outlook for US small caps.They explore whether higher interest rates really spell trouble for smaller companies, why earnings and valuations could matter more than rate moves, and whether improving market breadth, M&A and stronger balance sheets are creating a more supportive backdrop.With US small caps beginning to outperform after years in the shadow of mega-cap stocks, could a new small-cap cycle already be under way?

Artificial intelligence is driving one of the biggest investment cycles in decades. But with spending on AI infrastructure approaching extraordinary levels, can the returns keep pace?Michael Browne, Global Investment Strategist, is joined by Matt Moberg of Franklin Equity Group and Andy O’Brien of Putnam to examine the economics behind the AI boom. They explore the race to build data centres and computing capacity, the outlook for semiconductors and power, the battle between open-source and frontier AI models, and where investment opportunities could emerge as AI adoption spreads across the economy.They also tackle the harder questions: Is AI becoming a bubble? Where will the profits ultimately accrue? And what could bring the investment boom to an end?

In this episode of Allocation Views, Michael Browne from the Franklin Templeton Institute quizzes Oliver Wallin from the Franklin Templeton Investment Solutions team about their latest asset allocation changes in an environment of sticky inflation, geopolitical uncertainty, rising interest rates and growing concerns around AI concentration. The conversation explores whether the current AI investment boom is approaching bubble territory, and how investors can balance the opportunities created by AI.The discussion also considers the implications for portfolio construction, including the role of emerging markets in diversifying exposure to the AI trade. Also, after the recent Fed move and with central banks expected to continue raising rates, the episode considers whether markets are pricing in too much tightening. Finally, they look at what developments could change the current asset allocation view.Topics include:Is the AI investment boom becoming a bubble?AI concentration, CapEx spending and commoditisation risksPortfolio positioning and diversification beyond the hyperscalersThe outlook for US, European, UK, Japanese and emerging market equitiesLarge-cap versus small-cap exposure in a rising-rate environmentWhy European equities are becoming more attractiveThe case for duration and the outlook for UK giltsWhat could change the current risk-on stanceInflation, energy prices and the path of interest ratesMarket seasonality and the outlook for the remainder of 2026Connect & learn moreLearn MoreExplore Franklin Templeton's latest insights, market perspectives, investment solutions, and educational resources.Stay ConnectedFollow 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/@FranklnTempletnExplore more Macro MomentsDiscover expert commentary, timely analysis and investment ideas:https://www.franklintempleton.co.uk/campaigns/macro-moments-insights-from-the-franklin-templeton-institute

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.