Bloomberg Talks Jenny Johnson Talks Investment Landscape
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Apr 24, 2025 Jenny Johnson, CEO of Franklin Templeton Investments, dives into the complexities of asset allocation amid market volatility. She discusses how institutional investors are shifting towards defensive assets due to uncertainties. The conversation also touches on the impact of AI on productivity and the resilience of corporate America. Johnson highlights the emotional influences driving non-U.S. investments in Europe and explores the implications of shifting capitals on Europe's autonomy in defense and energy.
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Impact of Policy Uncertainty
- The current uncertainty in the market is driven by policy decisions like tariffs, taxes, and deregulation shifts.
- CEOs withholding guidance due to uncertainty slow investments, which drags on the economy.
Institutional Shifts and AI Potential
- Institutional investors are reducing exposure to U.S. equities in response to volatility.
- AI's productivity gains are anticipated but not yet fully realized, offering future opportunities.
U.S. Dollar Reserve Status Sturdy
- Despite some foreign pullback, the U.S. dollar remains the world's reserve currency.
- Emerging China trade gains chip away slowly but don't challenge U.S. currency dominance.