Mobius on the Lure — and Risks — of Frontier Markets

Templeton Asset Management’s Mark Mobius says a number of frontier markets across the globe are offering intriguing opportunities for investors — but that patience is a must for those who venture into these areas. “I view frontier markets as having tremendous potential for long-term investors, if — and this is a big ‘if’ — you are able to be patient and show some perseverance,” Mobius writes for South Africa’s MoneyWeb.co.za. “Just a few decades ago, China and India were considered frontier markets, and when I began my investment career Japan was considered an emerging market. So, you can see how […]

Mobius Talks Emerging Markets

Templeton Asset Management’s Mark Mobius says emerging market stocks are in a “sweet spot” valuation-wise. Mobius tells Bloomberg that on average EM stocks are trading for just 10 times earnings, a very low figure when compared to historical norms. He says he’s particularly high on equities in China, Russia, Turkey, and Thailand, and African frontier markets. Mobius says he likes consumer and service stocks in China, and discusses why he thinks China isn’t headed for a hard landing.

Mobius Turns to Africa

Templeton Asset Management’s Mark Mobius is finding a good deal of value in a place not known for great investments: Africa. Mobius tells Investors Chronicle that he’s high on telecoms, natural resources and consumer products in Africa, and is particularly bullish on banking stocks. “Banking in Africa is growing at a torrential pace and provides an opportunity to get exposure to the consumer sector,” Mobius says. He adds that “we want to get exposure before the multinationals come in — in the more developed emerging markets you will notice that multinationals have already come in and grabbed a large market share, […]

Mobius Bullish on Europe

Templeton Asset Management’s Mark Mobius says he is upping his exposure to European stocks, despite the continent’s lingering debt woes. “The stocks in the European countries have gone down excessively as a result of the bad news emanating from this crisis and we find good investment opportunities at bargain price and we are increasing the purchases of these stocks,” Mobius says, according to Bloomberg. Mobius adds that “we don’t think the crisis will last forever and the European economies will recover nicely, there will be much more fiscal disciple in one year or two”. He says he’s buying consumer-oriented stocks, […]

Mobius: Low Yields and Inflation Will Push Money Into Stocks

Templeton Asset Management’s Mark Mobius says that the combination of low-yielding fixed-income investments and looming inflation fears will have investors moving out of Treasurys and into stocks. “People are now beginning to realize that they cannot be sitting on bonds that are paying one, two or even three percent, when inflation is running higher than that,” Mobius tells CNBC, adding that investors will look to stocks instead. “If you look at equities of course, the yields are much, much greater than the bonds.” Mobius says Federal Reserve Chairman Ben Bernanke has made it very clear that the Fed will continue […]