Mark Mobius says bull market rally in emerging markets has just begun
The next "bull-market'' rally in developing-nation stocks has started, says Mark Mobius, executive chairman of Templeton Asset Management Ltd. in San Mateo, California. As the U.S. treasury unveils details to revive the banking system, stocks are rallying around the globe, including Russia and China. Mobius says there are bargains popping up in every emerging market.
"You have to be careful not to miss the opportunity,'' Mobius said in an interview with Bloomberg Television today. "With all the negative news, there is a tendency to hold back."
Some market analysts have preached caution this month, telling investors the current rally may be a head-fake by the market, before it again heads lower. As the rally has lengthened over the past week, more analysts and fund managers are bravely predicting a market bottom has been already been set.
"I have a feeling we're at the bottom and now we're building a base for the next bull market,'' Mobius said. While the bottom is in, he told Bloomberg, "you are going to see a lot of bouncing off the bottom because there's a tremendous amount of uncertainty in the market.''
Mobius, 72, who helps oversee about $20 billion of emerging-market assets at Templeton, was voted among the "Top Ten Money Managers of the 20th Century" by the Carson Group. In 2006, he was named one of the "Top 100 Most Powerful and Influential People" by Asiamoney magazine. In December, Mobius correctly predicted that emerging markets will rebound before developed nations.
Specifically, he's looking to buy stock in companies rich with cash, low in debt and high in dividend yields. He also is open to looking at companies that will pay shareholders while investing in growth.
In the TV interview, he mentioned companies including Hong Kong's Denway Motors Ltd., PTT Plc in Thailand, Indonesia's Bank Central Asia, ICICI Bank Ltd. in India, Taiwan Semiconductor Manufacturing Co. and Dairy Farm International Holdings Ltd. in Singapore.