Pay Attention to Geopolitics Says Franklin Templeton

The video discusses how geopolitics have taken a backseat to domestic issues, with a focus on trading relations with China. The impact of COVID-19 and the new administration's multilateral approach are examined, particularly in relation to China and the US. The discussion shifts to municipal bonds and the anticipated fiscal package, highlighting potential aid for states and localities and the attractiveness of tax-free municipal bonds.

What has caused geopolitics to take a backseat in recent times?

• Increased focus on environmental issues

• The COVID-19 pandemic and presidential election

• Rising interest in space exploration

• The decline of global trade

How might the new administration's approach to geopolitics affect relations with China?

• It will likely improve relations significantly

• It may not be constructive for US-China relations

• It will lead to a trade war

• It will have no impact on relations

What is the short-term outlook for municipal bonds according to the discussion?

• They are seen as an attractive investment

• They will become obsolete

• They will be heavily taxed

• They are expected to decline in value

What is anticipated regarding the second fiscal package?

• It will not be passed at all

• It will include significant support for states and locals

• It will be smaller than expected

• It will only benefit large corporations

What is the expected impact of potential tax increases on municipal bonds?

• They will be eliminated

• They will become less attractive

• They will remain unchanged

• They will become more attractive