Franklin Equity Group is excited about the future; whatever the new year brings, we anticipate enhancements to our ways of life.
We are long-term thinkers by nature. The difficulty of a 2022 outlook, at least as it pertains to our thinking, is that a year out is simply too short of a time frame. If we believe that our particular skill set directs us to finding value in companies that will grow well in excess of market rates for, in many cases, decades, then an outlook examining the next 365 days is deeply incomplete.
Over the past five years, we have spoken to clients about five distinct platforms: disruptive commerce, genomic advancements, intelligent machines, new finance and exponential data. We continue to see these platforms as both good lenses to view the changes happening within the global economy and as long-term drivers of innovation. However, while these platforms answer the question of “what” is going to change, they fail to answer “ why” we are going to experience this change. Looking to 2022, our answer to “why” can be summed up in three words: Byte, Atom, Gene.
WHAT ARE THE RISKS?
All investments involve risks, including possible loss of principal. The value of investments can go down as well as up, and investors may not get back the full amount invested. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Investments in fast-growing industries like the technology sector (which historically has been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments. The companies and case studies shown herein are used solely for illustrative purposes; any investment may or may not be currently held by any portfolio advised by Franklin Templeton Investments. The opinions are intended solely to provide insight into how securities are analyzed. The information provided is not a recommendation or individual investment advice for any particular security, strategy, or investment product and is not an indication of the trading intent of any Franklin Templeton managed portfolio. This is not a complete analysis of every material fact regarding any industry, security or investment and should not be viewed as an investment recommendation. This is intended to provide insight into the portfolio selection and research process. Factual statements are taken from sources considered reliable but have not been independently verified for completeness or accuracy. These opinions may not be relied upon as investment advice or as an offer for any particular security. Past performance does not guarantee future results.