However, Jenny Johnson has some reservations over Magnificent Seven stocks, due to ‘trickier’ risk proposition
DESPITE the handwringing over higher 10-year Treasury yields, the current rates are “actually slightly below average” and represent an environment that “the markets can handle”, said Jenny Johnson, Franklin Templeton president and CEO.
Investors, however, “have to be thoughtful (and consider) where (they) are in the market”.
“There will be pockets of the market that built their businesses on a low-rate environment. I think private equity (PE) will struggle a bit on buyouts and exits, and if they are leveraged heavily.”