Legendary Emerging Markets investor Mark Mobius of Templeton Asset Management recently discussed investment opportunities around the globe. Commonly regarded as one of the most prolific emerging markets investors over the last 20 years, Dr. Mobius leads the Templeton Emerging Markets Equity Group, which oversees approximately $15 billion in assets.
When asked about where he is seeing the best values, Dr. Mobius commented that his team is finding opportunities across the globe, although they are generally favoring China and Brazil, with significant exposures to Russia, India and Turkey. As far as his sector outlook, Mobius said, “we believe commodity stocks look good because we expect the global demand for commodities to continue its long-term growth. We also favor consumer stocks. With rising per-capita income and strong demand for consumer goods and services in many emerging markets, we believe the earnings growth outlook for these stocks is positive.”
Dr. Mobius also expressed his opinions on a few Frontier Markets. On Sri Lanka, he stated his belief that it’s “fundamentally rich...and that the challenges revolve around how the true potential in tourism, agriculture and industry can be effectively met. We have been investing in Sri Lanka for many years. For us, the biggest challenge in the public market is liquidity. Trading turnover is rather low although we have found some investment bargains.” With regards to Malaysia, Mobius commented that “we believe the long-term outlook for Malaysia remains positive and that the economy has been resilient, supported by stable macroeconomic fundamentals, a sound financial sector, flexible fiscal and monetary policies, continued demand for natural resources and sustained domestic demand.”
Finally, Dr. Mobius reflected on the financial crisis, stating that “the good news is that on average, bull markets have lasted longer than bear markets, and bull markets have gone up in percentage terms more than bear markets have gone down. In terms of other risks, I believe there is still a danger of the unregulated derivatives market.” |
