While investors may be working out an asset-allocation for their wealth, veteran emerging markets investor Mark Mobius shared his investment strategy if he were given $100,000.
While investors may be working out an asset-allocation for their wealth, veteran emerging markets investor Mark Mobius shared his investment strategy if he were given $100,000. “I would put one-third of the amount in commodities, most notably platinum and palladium. Palladium has gone up a bit too high, but it is used as a catalytic converter in gasoline engines, and despite electric cars coming in, gasoline engines are the biggest thing in China. One-third into African stock markets particularly places like Nigeria, Zimbabwe, Kenya and South Africa. The last one-third would be in Vietnam,” Mark Mobius, Executive Chairman, Templeton Emerging Markets Group told Bloomberg in an interview.
Sharing reasons for his investments into Zimbabwe, the expert said that he expects a stock market correction in the country, which provides a great opportunity. “The reason I said Zimbabwe is that I expect the markets to come down. As you know, it’s all traded in US dollars. The reason it will come down is Zimbabwe is looking to open the markets, they will have some additional foreign reserves, that will allow investors to get out. This will mean that it will be necessary for local investors to be investing in that market, now that they have a tangible asset, so the market will come down, and that will be a great opportunity,” Mark Mobius told the channel.
In September this year, Mark Mobius revealed his greatest regret. After having spent more than four decades in analysing the emerging markets across the globe Mark Mobius said that the biggest regret in his life is not having started early. In conversation with Keith Damsell, the vice president at Global Internal Communications at Franklin Templeton, Mark Mobius said, “I wish I had started in the investment arena earlier than that because I spent many years studying. Of course, it now stood me in good stead, but I would say that’s the biggest regret.”
Giving the investors a glimpse into the future of stock markets across the world, Mark Mobius says that emerging markets may be redefined to be called high-growth countries in the next ten years as they are slated to see a lot of demand for consumer durables due to the burgeoning population. Writing specifically about India and China, Mark Mobius explained, “Well, look five or 10 years from now, you’re going to see these consumer markets become bigger than what you see in Europe, in the US. Because look, China and India each have a billion people and their incomes are rising.”