~ Jenny Johnson, Franklin Templeton CEO, Yahoo Finance interview, July 14, 2021
Jul 14, 2021
Jenny Johnson: "the next decade is not going to have the same tailwinds"
We've just come off a decade where there's been massive central banks pumping money into the system. You've had interest rates at historically low levels... You can't fall off the floor; they're probably not going much lower. So they're either going to stay there for a while or go up... Look at the passive bond indexes: Their durations have expanded over the last 15 years. That becomes a different risk. Equity markets where 6 stocks accounted for 50% of the return in the last 10 years. There have been great tailwinds this last decade, but I could say one thing for sure is "the next decade is not going to have the same tailwinds." So there's going to be some real challenges there.
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