FICC Focus Macro Matters: Global Asset Allocation With Stephen Dover
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Nov 20, 2025 In this engaging conversation, Stephen Dover, Chief Market Strategist at Franklin Templeton, shares insights on the future of global growth and asset allocation. He predicts three rate cuts in 2026 and discusses the potential for a 10-year yield between 4-4.5%. Stephen emphasizes the importance of diversifying equity exposure beyond AI, highlighting investment opportunities in emerging markets. Additionally, he explores the implications of stable interest rates on valuations and champions private markets for future gains.
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Growth Acceleration Into 2026
- Global growth is likely to accelerate into 2026 driven by robust earnings and capital spending, especially U.S. corporate capex and accelerated depreciation.
- Lower tariff uncertainty, tax refunds, and potential AI-driven productivity gains support that cyclical upswing.
Broaden Equity Exposure
- Broaden equity allocations beyond concentrated AI/large-cap tech exposure into smaller caps, other sectors, and overseas markets.
- Seek selected emerging markets like India and Southeast Asia to capture currency and growth upside.
EM Is Core To The AI Supply Chain
- Emerging markets supply key AI inputs from Samsung, Taiwan fabs, and India and can 'leapfrog' in adopting AI-driven applications.
- China offers scale and government alignment, posing both a competitive threat and investment case.