Many investors have given up on emerging markets in the wake of their recent plunge.
Not Mark Mobius, executive chairman of Templeton Asset Management. He recommends the opposite course.
“We’re buying aggressively,” Mobius told Bloomberg TV. “China is first because it’s the fastest-growing major nation in the world.”
China’s growth registered 11.9 percent in 2007, though it slumped to 9 percent in the third quarter this year.
“India also is growing 6 to 7 percent. We expect that to continue [in China and India] during the next year and following years, though there will be some deceleration,” Mobius says.
He’s bullish on South Africa and Turkey too.
“Stock prices are at very attractive levels there. So we continue to buy,” Mobius explains.
Templeton focuses on the consumer sector in emerging markets, because per capita income is jumping there, he says.
Services such as banking are an example.
“Consumer banks. Credit cards and mortgages are just beginning to hit these markets,” Mobius says.
Retailers selling consumer goods such as food, furniture and household goods also represent an investment opportunity, he says.
So do cell phone companies. “Cell phone growth in emerging markets is astounding,” Mobius points out.
Not everyone is so bullish.
After emerging stock markets fell more than 1 percent Monday, Arnab Das, head of emerging market strategy at Dresdner Kleinwort, told Reuters, “We're only beginning to see the awful economic data as the impact on the macro-economy from the financial crisis.”
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