The monthly economic dashboard from Franklin Templeton Fund Group indicates that US economic indicators including building permits, unemployment claims, and retail sales reported in May are showing a consistent "expansion" in the green zone for 12 consecutive months. Despite some indicators like employment confidence and ISM new orders showing signs of recession, improvements in truck transportation and the yield curve indicate recovery in the economy.

Franklin Securities advised that the legal battle over Trump administration's tariff policy may take 12-18 months to resolve in the supreme court, creating uncertainty for the future of these tariffs. As this legal struggle intensifies, countries are likely to approach negotiations with the US with increased caution.

Following a robust rebound in global stock markets, investors are encouraged to focus on short to medium-term investments while maintaining neutral interest rate exposure and diversified portfolios. Core recommendations include balanced funds and holding non-investment grade bonds. Franklin Templeton's investment strategist noted that while there have been advancements with tariffs and budget proposals, market volatility is expected to persist due to uncertainties. Long-term market performance will be significantly influenced by the final size of the budget proposal and its impact on the US deficit.