Global value manager focuses on earnings stability

Overseas woes may erode U.S. corporate profits, Peter Moeschter says.

Sonita Horvitch 13 April, 2016 | 5:00PM

Peter Moeschter, executive vice-president, Templeton Global Equity Group, at Franklin Templeton Investments Corp., says the global equity market is being hampered by investors' concerns about the sustainability of both global economic growth and corporate earnings.

"The developed-country equity market has produced modestly negative total returns for approximately two years," says Moeschter. Besides the ongoing concerns among investors as to the direction of global economic growth, valuations in some key developed-country markets, such as the United States, have remained fairly high, he says. "This has also weighed on the overall performance of these markets."

The MSCI World Index, which covers 23 developed countries, produced a negative total return of 0.2% in U.S.-dollar terms for the first three months of 2016 and a negative total return of 2.9% for the 12 months to the end of March 2016.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Apache Corp26.75 USD-5.81
Citigroup Inc72.53 USD-5.12
Halliburton Co19.83 USD-6.73
HSBC Holdings PLC ADR35.50 USD-2.63
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Macy's Inc15.45 USD-4.81
Stanley Black & Decker Inc151.08 USD-4.44
Toyota Motor Corp ADR134.49 USD-3.27

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Sonita Horvitch

Sonita Horvitch