While US investors focus on growth, international markets may remain the best places to find value opportunities in 2026, says Franklin Mutual Series.

US investors are more concentrated than they think. Franklin Mutual Series believes diversifying into local, non-US currencies yields benefits, particularly in an environment of downward US-dollar pressure.

We remain bullish about many of the corporate changes taking place in Japan. Toyota Group recently announced it was taking Toyota Industries private (its auto parts and forklift business) to simplify the group’s structure.

The Japanese economy and stock market are turning a corner after decades of disappointment. Mutual Series believes finding the companies that are truly embracing reform could prove crucial in uncovering and unlocking tremendous value over the next few years.

After years of lagging behind the tech-heavy US market, Franklin Mutual Series sees international value stocks coming back into the spotlight over the coming years as the traditional economy comes into sharper focus.

Robust engagement with company management can be key in sparking catalysts that unlock shareholder value and potentially lead to better returns over the longer term, according to Franklin Mutual Series Environmental, Social and Governance (ESG) Ambassador Tim Rankin.