Max Gokhman, Deputy Chief Investment Officer at Franklin Templeton, joins the conversation to break down a volatile week in the markets and what investors should be watching next. After an eight-day run of gains, the S&P 500 finally pulled back, reflecting a more cautious, risk-off sentiment. Max explains that this shift is largely driven by upcoming geopolitical developments and a packed earnings calendar, noting that the market’s behavior while less aggressive was actually a rational pause after a turbulent stretch.
The discussion also dives into the latest inflation data, with March CPI coming in at 3.3%, largely fueled by rising energy prices tied to global tensions. Max highlights how these pressures could spill into core inflation if oil prices remain elevated, potentially adding significant inflationary strain that both the Federal Reserve and investors will need to navigate. As earnings season kicks off with major players like Goldman Sachs and JPMorgan Chase, attention is turning to consumer health especially signs of stress among lower-income households, such as rising credit card and mortgage delinquencies. These indicators could hint at broader risks, including the possibility of stagflation.
On the crypto front, Max points out an unexpected trend: reduced volatility across major digital assets, even compared to traditional markets like commodities and equities. He attributes this to ongoing market deleveraging and increasing regulatory clarity from agencies like the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Rather than a single breakout moment, Max sees the future of crypto being shaped by steady institutional adoption, signaling a shift toward a more stable and mature asset class that investors can increasingly rely on.
