Written by Kate Lakin, Director of Research and Portfolio Manager, Putnam Investments, part of Franklin Templeton

I love living in Boston and it is an easy city to enjoy in summer. It is walkable, historic and full of character, with museums, art, restaurants, universities, and sports teams that people follow with passion. It also has the advantage of being close to the water, which we love in the warmer months.

We get all four seasons here. Winter can be cold and long, so summer is something Bostonians do not take for granted. When it warms up, people move outside quickly: to the harbour, to the parks, to the beaches north and south of the city. For my family, that rhythm is part of life in Boston. I live in the city with my husband, our three children who are such fun, and our dog — of course a Boston Terrier!

I’m also fortunate to live in Boston as an investor. The city has long been one of the important centres of the asset-management industry. Large investment firms are based here, and corporate management teams regularly come through the city. That creates a useful flow of meetings and conversations, not only with companies but also with people from academia, medicine and technology.

Healthcare is one example. Boston and nearby Cambridge bring together biotech companies, pharmaceutical businesses, hospitals, research institutions, and universities. For investors, that proximity can create great opportunities for corporate access. This summer a group of investors from across our Franklin Templeton investment groups will travel to Boston for a healthcare corporate access tour.

Kate Lakin  from Putnam Investments, part of Franklin Templeton. (Image: Courtesy)

Exciting Opportunities Remain in US Equity Market

As for today’s US equity market, some investors are concerned about valuations, especially for technology stocks, which have become a larger weight in the index and tend to trade at a premium to the market. However, the picture is more nuanced than a simple look at multiples. Many of these companies have such incredible earnings growth potential that we believe their valuations are not overly demanding.
Artificial intelligence is particularly exciting today.

While there is still uncertainty around how the technology will develop and who will ultimately capture the value, it is clear that very large sums are being invested in building AI capabilities. That makes the topic critical to our investment conversations.

At the same time, the US consumer remains an important area to watch. Consumers have been resilient despite inflation, tariffs, and geopolitical concerns. But higher energy prices, weaker sentiment or renewed pressure on household budgets could change that. In an economy where consumer spending plays such a central role, it is one of the indicators I follow closely.
Summer in Boston is a reminder that conditions can shift quickly. After a hard winter, the city opens up almost overnight. For investors, the lesson is similar: enjoy constructive periods, while continuing to watch the weather.