“Emerging market stocks are poised to do well according to Franklin Templeton’s emerging markets specialist Mark Mobius. Speaking with CNBC he pointed to two clear reasons.
First, he said the selloff in Treasuries will send more money into equities and at least a third of that into emerging market stocks.
Since emerging markets now account for about 30 percent of global market capitalization Mobius said we should expect a corresponding flow into EM 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. …If you look at equities of course, the yields are much, much greater than the bonds.”
Second, he said emerging markets will benefit from quantitative easing. Mobius said markets can expect to see money supply increase since Fed chairman Ben Bernanke promised to increase liquidity until he saw sustained growth.
Mobius also said he was bullish on Africa because it would gain from investments from countries like Brazil, India and China. Mobius told CNBC that oil prices have not kept pace with inflation and that “there’s some catch up to do.” He said he was bullish on Russia because of the rise in oil prices.”
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How does one “bullish?”
Not that I don’t doubt that word is an actual verb, given the last five years’ shennanigans.
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ASK BI
Did “well my friends were doing it too!” work with YOUR mother?
I was never able to get that one past the Board of Approval.
Check your work. It’s only a damned headline.
A-GAME!
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