🌐 **Franklin Templeton: Why Now for Emerging Markets**

**MSCI Emerging Markets** trades at ~10x forward earnings vs ~18x for the S&P 500 — one of the widest valuation gaps in years.
• EM equities sit near a **45%** discount to developed markets on price-to-book, a gap Franklin Templeton says isn't justified by relative profitability.
• A _weakening US dollar_ is seen as a tailwind for EM equities and debt in 2026.
• The firm's Institute expects a broader lift in non-US equities as valuations improve and earnings momentum builds.

**💡 Why it matters:** Cheap EM valuations plus a softer dollar make a classic reallocation setup — worth watching alongside the broader 2026 case for diversifying away from US mega-cap concentration.

[🔗 Read more](/leaving?url=aHR0cHM6Ly93d3cuZnJhbmtsaW50ZW1wbGV0b24uY29tL2FydGljbGVzLzIwMjYvZXF1aXR5L3doeS1ub3ctZW1lcmdpbmctbWFya2V0cw==)
[#franklintempl](/search?q=%23franklintempl)