Franklin Resources (NYSE: BEN), an asset management company that works under the name Franklin Templeton Investments, came out yesterday with strong numbers. They reported income of $518.3 million, or $2.12 per share diluted, on revenues of $1,685.6 million for the quarter ended December 31, 2007. In the quarter ended September 30, 2007, net income was $436.9 million, or $1.76 per share diluted, on revenues of $1,629.1 million. For the quarter ended December 31, 2006, net income was $426.8 million, or $1.67 per share diluted, on revenues of $1,427.8 million.

Operating income for the quarter ended December 31, 2007 was $635.7 million, as compared to $541.4 million for the prior quarter and $508.1 million for the quarter ended December 31, 2006.

In what many considered a very challenging environment for the asset management industry, they continue to grow their business. The stock has gotten pounded along with the rest of the market, and is over 30% off its' high.

This seems like a great long-term play. Their are many catalysts that should help drive earnings in the coming quarters.

1) A 33.3% increase in its quarterly dividend over the dividend paid the prior quarter and the same quarter last year. The company has increased its annual dividend rate every year since 1981.

2)10 million shares stock buyback

3)The Industrial and Commercial Bank of China, China's largest commercial bank, selected Franklin Templeton Investments to manage its newest Qualified Domestic Institutional Investor fund for domestic Chinese retail and institutional investors.

This may be the biggest driver going forward, as they will get a big chunk of Chinese retail and institutional money.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has a position and is long BEN. He has no positions in any stock mentioned as of 1/25/08

If you are bothered by the down-turn in the stock market perhaps you need to think longer term when you invest. In the long term the market will be up. If you are hit with a cold sweat by rapid downward movement in stock prices perhaps you have not set aside enough reserve capital to ride out the storm. You should increase your cash reserves or invest a greater amount in a mix of bond funds. You should not put long term money in short term investments, nor should you put short term money (needed in the next six months) in long term investments.

Momentum can move a market up and it can move a market down very rapidly and good companies can get caught in the "group think" which may be very irrational. If your tolerance for volatility is low then you should increase your investment diversification, trade less, use index funds and continue to adjust your portfolio using a proven asset manager if you do not have the ability to do it yourself.

Any good investment company or manager will ask you to assess your risk tolerance early in the process of setting up an account, but you should ask yourself this question even if you do not have an adviser. If you are feeling anxious about the current market you were not honest with yourself when you considered this question, or you did not address the issue at all.

At times like these I am reminded of what the economist, John Maynard Keynes, said, "The market can stay irrational longer than you can stay solvent." If you foresee potential liquidity problems in your future you should address them now; you should not hope for a turn-a-round to save you. Yes, the market will turn around, but when is the question, and you do not want to be worried about when. This is where long term thinking and value investing have a great advantage over momentum investing, technical analysis, growth stories and of course day trading.