Tags: mobius | global | rally

Mobius: Global Rally Still Has Legs

By Julie Crawshaw   |   Thursday, 01 Oct 2009 12:26 PM

Templeton Assets Emerging Markets head Mark Mobius says this global rally still has legs, thanks to massive global liquidity created by governments and derivatives.

"Derivatives are not dead,” Mobius told The UK Telegraph.

“There's $600 trillion dollars worth of derivatives out there" and since derivatives can leverage money, they have a “multiplier effect.”

Because the global money supply is growing at a rapid pace, a lot of money is available for investment, and investors would do well to consider putting some f their funds into frontier markets like Kazakhstan, Romania, Vietnam, and some African countries.

“The nice thing about emerging market funds is that we can invest in any of those markets,” Mobius says.

Though there will undoubtedly be bull market corrections, some of which could be big and violent, Mobius advises investors to forget about trying to time them and take a five-year view instead.

“Decide how much money you want to put in and then divide it up into five years or as many months as you think is appropriate,” Mobius says.

“This way, you hit the peaks and the valleys and you do fine.”

Vietnam's economy expanded at a faster pace in the third quarter, putting the country on track to exceed its 5 percent growth target for the full year, The Associated Press reports.

Gross domestic product is expected have expanded 5.8 percent from a year earlier in the third quarter, compared with 4.5 percent growth in the second quarter, the Vietnamese government said.

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Templeton Assets Emerging Markets head Mark Mobius says this global rally still has legs, thanks to massive global liquidity created by governments and derivatives."Derivatives are not dead,” Mobius told The UK Telegraph. “There's $600 trillion dollars worth of derivatives...
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