Europe may be down but not out, and good investment opportunities will arise soon, especially when troubled countries sell off state-owned assets, says Mark Mobius, executive chairman at Templeton Asset Management's Emerging Markets Group.

"One of the reasons why I'm optimistic about Europe is that all this money in emerging markets is waiting for the opportunity to buy assets in Europe," Mobius tells CNBC.

"So there's going to be plenty of opportunities for Europe to sell state assets or other assets... So the picture looks very good."

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Indebted countries often privatize state entities like utilities or tourism assets to narrow deficits and pay down debts amid tough times.

Emerging markets will continue to outperform their more industrialized counterparts, despite a cooling economy in China, where opportunity still exists.

“The emerging markets are doing very well. Economically this year average growth for all these markets would be around five percent and the debt to GDP levels are low compared to developed countries,” says Mobius, noted emerging markets investor.

"Generally speaking we're back in China. We're doing more in China now because of this negative sentiment there's some opportunities in China we can look at through the Hong Kong Market of course."

India, Indonesia, Thailand and Eastern Europe all hold good investment opportunities as well.

Once considered high-risk, high-reward venues, emerging markets have become a staple in many investment portfolios in recent years, as their economies and companies have grown in size and complexity.

European countries and markets once considered less risky due to their eurozone membership are now avoided thanks to the European debt crisis.

"We have seen a structural shift in asset allocation from mature bond markets into emerging bond markets," says Thanasis Petronikolos, head of emerging market debt at Barings Asset Management, Reuters reports.

"You can get much higher returns from emerging markets."

Editor's Note: This Wasn’t an Accident — Experts Testify on Financial Meltdown