Tags: mobius | buy | bric | stocks

Mobius: Buy Brazil, Russia, India, and China

Thursday, 11 Dec 2008 03:44 PM

By Michael Carr

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Mark Mobius, who manages more than $24 billion in emerging market investments for Templeton Asset Management, says Brazil, Russia, India, and China (BRIC) markets are a buy opportunity.

"We're like children in a candy shop," Mobius told Bloomberg. He is especially excited about the prospects of India and China.

He added that his firm is aggressively buying consumer stocks in emerging markets. Mobius thinks that growth in per-capita personal income is fueling a consumer boom in those countries.

Recent terrorism in India isn't scaring Mobius away. Speaking after the attacks, he said India remains a fast-growing economy and that the attacks shouldn't have any impact on investment decisions there.

"It's a fast-growing economy and we can't allow this kind of incident to sway our decisions regarding where we want to invest," Mobius said in a Bloomberg Television interview. "India will rise from this and prosper."

In fact, Mobius thinks that a slowing global economy can benefit India by giving the central bank room to cut rates. India is a "very large market," he said, that is relatively independent of the global economy.

Jim O'Neill, economist at Goldman Sachs, agrees and says the faster growth investors have seen in the past from these countries will survive the current global economic crisis. The four nations account for roughly 15 percent of global GDP, and have grown their economies by about 10 percent a year.

"The BRIC consumer is going to rescue the world," O'Neill said, because they are ready to spend more as their incomes increase.

Supporting this conclusion, China's retail sales jumped 22 percent in October, according to government reports.

"Since October 2007, the Chinese shopper alone has been contributing more to global GDP growth than the American consumer," O'Neill observed.

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