Franklin Equity Sees Long-Term Investment Opportunity Amid US Election Volatility

KUALA LUMPUR, Nov 8 (Bernama) -- Franklin Equity Group sees the short-term volatility arising from the US presidential election as a long-term investment opportunity. Portfolio Manager Research Analyst, Vice-President, Grant Bowers said the firm's investment process is to assess each opportunity for long-term growth prospects on a case-by-case basis. "We are mindful of the Brexit lesson in which the referendum outcome defied experts and consensus expectations. "In this regard, we are not positioning the portfolio for any particular outcome nor changing our US opportunities portfolio positioning or allocations substantially due to the expected heightened equity market volatility in the immediate term," he said in a statement Monday. Bowers said the firm is focused on tangible fundamental factors outside of the political realm such as earnings, free cash flow and the identification of multi-year secular growth opportunities. "The prevailing environment of low inflation, the US dollar strength and a slowly improving labour market could allow for a long runway before significant interest rate increases are required. "These factors may continue to contribute to an economic backdrop that is supportive of the recovering domestic economy and secular growth, particularly in US consumer strength, technological innovation and evolving health care discoveries," he said. -- BERNAMA