Hasenstab: US strength spells trouble for weaker economies in 2015

Michael Hasenstab, manager of the $39bn Templeton Global Bond fund, provides his macroeconomic outlook for 2015.

In recent months, global financial markets have been broadly influenced by the pickup in growth in the United States, the economic stabilization in China, and the abundance of global liquidity from the Bank of Japan (BoJ) and the European Central Bank (ECB). We continued to see differentiation among specific emerging market economies in 2014; some had healthy current account and fiscal balances with strong export-driven economies, while others struggled with deficits and economic imbalances. Looking ahead to 2015, we believe investors should not view the emerging market asset class as...