Mobius: Emerging Market Selloff is Temporary

Thursday, 29 Sep 2011 12:17 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Emerging markets are taking a pounding thanks to fears that European and U.S. economies may tip back into recession, but the selloff is temporary, says Mark Mobius, Executive Chairman at Templeton Emerging Markets.

"There will be a reversal … this is just a correction in an ongoing bull market,” Mobius tells CNBC.com.

The MSCI Emerging Market Index is down 20 percent from its peak in May, CNBC.com adds, but investors are on the sidelines taking a breather, and not out of the game.

Mobius200.jpg
Mark Mobius
(Templeton file photo)
Once uncertainty surrounding the European debt crisis clears up, money will flow into more lucrative emerging markets in a manner similar to what happened after the 2008 Lehman Brothers collapse in the U.S.

"After all this turmoil is over you're going to see people moving back into these countries, many people haven't left (and) you'll see more and more people coming in," Mobius says.

One big emerging market will stand out in particular.

"Stocks have come down to a level that is very attractive, so we are continuing to buy in India," Mobius says.

Some say better days are already here for emerging markets, especially on renewed hope that Greece will avoid defaulting, which would inflict serious damage on the European financial sector.

"Investors appear to be betting that Europe will see some progress in agreeing to contain the region’s troubles," says Lim Chang Gue, a fund manager in Seoul at Samsung Asset Management, which oversees about $29 billion, according to Bloomberg.

"Markets that had been hit hardest during recent selloffs are responding in a big way."

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved