Originally Posted, August 13, 2025 – Global Investment Management Survey
The May 2025 survey results are from investment professionals across all asset classes, and we provide our predictions on inflation, recession, asset class performance and more.
The Franklin Templeton Institute surveyed portfolio managers across all our asset classes: equity, private equity, fixed income, private debt, real estate, digital assets, hedge funds and secondary private markets. The goal of the Global Investment Management Survey is to provide the most comprehensive global view on the dimensions that matter most to our clients.
The findings reflect the average of the group. While each of our investment teams are independent and have different outlooks, the survey serves as a starting point in understanding Franklin Templeton’s aggregate views on the economy, equities, fixed income and alternatives.
The survey results outlined in this paper are as of May 2025, and the market data is as of July 31, 2025.
Exhibit 1: Expectations for 2025 Based on the Franklin Templeton Global Investment Management Survey
Focus on Quality Across All Asset Classes
Source: Franklin Templeton Institute Global Investment Management Survey expectations are for 2025 and are as of May 2025. Survey methodology included at the end of the paper. *Updated survey stats as of August 8, 2025.
Past performance is not indicative of future results
Key takeaways
Economic growth slowing but positive
- Global growth will be in line with consensus expectations across major regions.
- We expect core PCE to approximate 3.00%–3.50% and will likely remain above central-bank targets.
- Unemployment will remain relatively low in the United States and will end the year between 4.50%–4.75%.
- The US dollar will weaken modestly in 2025.
Equities likely to end the year at 6400-6800
- Earnings will grow at 5%–10% versus consensus 10.8%.
FAVOR
- US large cap, value and growth. We expect the stock market to continue to broaden out. We are bullish on Europe, India and Japan.
- Sector focus on technology, financials and health care.
- Factors to focus on include free cash flow yield, balance sheet strength and return on invested capital.
RISKS
- Recession, geopolitics and earnings below expectations.
Shorter duration fixed income will broadly benefit from declining interest rates on the front end of the curve in 2025
FAVOR
- Although default rates for high-yield debt are likely to tick modestly higher in 2025, spreads are expected to increase moderately in a sector with relatively low interest rate risk and high all-in yields.
- Shorter duration fixed income will be in favor, as rates are still relatively high and will come down only modestly by the end of 2025.
- Municipals will continue to be a high-quality, diversifying investment option with attractive tax-free yields.
RISKS
- Geopolitics and the policies of the Fed and other major central banks.
Disclosure: Franklin Templeton
The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. Because market and economic conditions are subject to rapid change, comments, opinions and analyses are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment or strategy.
This information is intended for US residents only.
Disclosure: Interactive Brokers Third Party
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Franklin Templeton and is being posted with its permission. The views expressed in this material are solely those of the author and/or Franklin Templeton and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Disclosure: Bonds
As with all investments, your capital is at risk.
Join The Conversation
If you have a general question, it may already be covered in our FAQs page. go to: IBKR Ireland FAQs or IBKR U.K. FAQs. If you have an account-specific question or concern, please reach out to Client Services: IBKR Ireland or IBKR U.K..
Visit IBKR U.K. Open an IBKR U.K. Account