SOURCE: Franklin Templeton

Franklin Templeton

June 21, 2011 10:48 ET

Americans Look to Stocks and Real Estate for Decade Ahead Finds Franklin Templeton Global Investor Sentiment Survey

SAN MATEO, CA--(Marketwire - Jun 21, 2011) - Americans are banking on stock market performance over the next decade. More than a quarter (29 percent) of Americans surveyed expect stocks to be the best-performing asset class over the next 10 years, according to results released today from the Franklin Templeton Global Investor Sentiment Survey.

Of the 1,049 U.S. survey respondents, the percentage who selected stocks to be best-performers over the next decade was the largest. Despite a slow recovery when it comes to home prices, real estate was the second most popular selection -- with about a quarter (26 percent) of those surveyed identifying the asset class. This is compared to those who chose precious metals (18 percent), non-metal commodities (14 percent), bonds (six percent), currencies (six percent) and derivatives (one percent).

"Short-term volatility has always been a part of investing in the stock market, but investors have benefited from the market's long-term upward trend," said David McSpadden, senior vice president of Global Advisory Services for Franklin Templeton Investments. "If we look closely at the market's long-term history, investors have seen positive returns in the stock market, especially following periods of weak returns. Thus we were encouraged to see that Americans are continuing to warm up to stocks and recognize their potential."

Interestingly, men expressed greater optimism for stocks than women, with 35 percent stating that stocks are most likely to perform best over the next decade versus 23 percent of women surveyed.

Global Comparison
Americans are more bullish on stocks over a 10-year investment horizon than their global counterparts. The survey polled 13,076 people in 12 countries, and revealed differing regional views on what asset classes are anticipated to perform best.

While the largest percentage of Americans (29 percent) expect stocks to outperform, each of the other regions expects real estate to be the top-performing asset class over the next decade:

  • Among Asian respondents, 20 percent expect stocks to perform best over 10 years, with the largest percentage (30 percent) favoring real estate.
  • In Latin America, 17 percent of respondents said the top asset class over the next 10 years will be stocks, versus 27 percent favoring real estate.
  • In Europe, 18 percent of respondents said that stocks would be the best-performing asset class over the next decade, while one-third (33 percent) believe that real estate will perform the best.
  • For Americans, real estate was the second most popular choice, with 26 percent of respondents selecting it to perform the best looking out 10 years.

Other U.S. Findings
Other noteworthy findings among American respondents included:

  • Americans are looking globally in terms of equity investing, with nearly three-quarters (73 percent) stating that the best opportunities in stocks will lie not only in the U.S. over the next 10 years.
  • Men were more bullish on 2011 equity performance, with 65 percent of men expecting the stock market to be "up significantly or slightly" for the year versus 58 percent of women.
  • Three in five (59 percent) Americans don't think they will be able to meet their long-term investment goals without investing in stocks.

Methodology
The Franklin Templeton Global Investor Sentiment Survey, conducted by ORC International, an Infogroup company, included responses from 13,076 individuals in 12 countries: Brazil, Chile and Mexico in Latin America; Hong Kong, India, South Korea and Singapore in Asia; Germany, Italy and the UK in Europe, and the U.S. and Canada in North America. Survey respondents were between the ages of 18 and 64 in all countries, except in the UK and U.S. where survey respondents were 18 years of age and older. Surveys were completed from January 6 to 17 in all countries except the U.S. where the survey was completed from January 6 to 7. Data were weighted to make the results representative in each country.

Investors should carefully consider a fund's investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/(800) 342-5236 or visit franklintempleton.com. Please carefully read a prospectus before you invest or send money.

Investments involve risk and may result in loss of principal. Stocks have historically outperformed other asset classes over the long term, but tend to fluctuate more dramatically in the shorter term.

Investments in foreign securities involve special risks including currency fluctuations, economic instability and political developments. Investments in emerging market countries involve heightened risks related to the same factors, in addition to those associated with these markets' smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Such investments could experience significant price volatility in any given year.

About Franklin Templeton
Franklin Resources, Inc. (NYSE: BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and over $735 billion in assets under management as of May 31, 2011. For more information, please visit franklintempleton.com.

Copyright © 2011. Franklin Templeton Investments. All rights reserved.

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