The US stock market has seen a sharp sell-off recently, driven by growing policy uncertainty. At the start of the year, Franklin said that investors had taken long positions in equities, but as risk perception changed, money started flowing out.
While concerns about a slowdown persist, Franklin does not foresee an immediate recession. He believes the economy is shifting from government-driven growth to private sector-led expansion.
However, he cautioned that the transition could lead to short-term challenges. “We do expect a moderating growth path in the US in the early months of this year,” he said while stating the potential for a recovery later in 2025.
Also Read: Global strategists weigh in on US recession risks, Fed cuts, and market trends
On India, Franklin remains optimistic about the country’s structural growth story. Though foreign investors have recently reduced their exposure due to a valuation reset, he sees this as a temporary phase. Manulife is monitoring the Indian market for potential opportunities to increase its allocation in the near future.
Also Read: Will there be a global recession in 2025?
For the entire interview, watch the accompanying video
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(Edited by : Unnikrishnan)
