Europe will pull through its current debt crisis and thrive afterwards, says Mark Mobius, executive chairman of Templeton Emerging Markets Group.
Central and Eastern Europe are especially great places to invest right now, such as in Austria or Romania, as the region is poised for recovery.
"Reforms are taking place now in Europe, the effects will kick in next year, and then you're going to see a much stronger regional community," Mobius tells CNBC, adding Chinese and Middle Eastern companies are already investing in the region.
Russia represents another market poised for growth.
While the country is rich in oil, it's also home to a growing consumer market.
"On our private equity side we've made very good money in companies involved in retail, trade, in automobile tires, in fruit drinks and that sort of things," Mobius says.
Russian Prime Minister Vladimir Putin has admitted his economy needs better performance.
"To have an economy that neither guarantees us stability, sovereignty or well-being is inadmissible for Russia," Putin said recently, according to the AFP newswire.
"We need a new economy with competitive industry and infrastructure, with a developed services sector, with effective agriculture."
Putin has also said the government will reduce its role in the economy, which has drawn applause in the economy.
"The more Putin talks the reform case, the more investors will become interested," says Kingsmill Bond, chief strategist at Citigroup Inc. in Moscow, according to Bloomberg.
"Russian equities, like many risk assets, remain cheap but Europe is still the key factor in determining market levels, and that’s really outside of Russia’s control."
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