Not everyone believes in the ability of emerging markets to withstand the crisis, but Mark Mobius believes. The expert believes that EM markets is about to turn around and resume its growth - based on AMarkets.
Mark Mobius, chairman of the fund Templeton Emerging Markets Group, talks about the possible growth of the developing region that has just recently experienced the worst moment of the sales in the last 4 years. The expert said that he was "just happy that EM region that is undervalued by investors - this is a chance to buy the paper at attractive prices in the region." MSCI Emerging Markets Index Index was able to compensate for all the losses incurred in 2016 and moved up to 16% with a minimum of 2009 in January. The indicator of the dynamics of the developed countries in the region grew by only 2% in the current year. Growth in demand for risky assets comes amid rising oil with 13-year lows. Positive news in total outweigh the negative - slowing China, as well as the expected increase in the US Fed rates.
Mobius said: "Do not follow those who have lost faith in the economy of China. Even in a slowing China - growing economy when compared with other countries. Another growth oasis - India. And by the way, the Malaysian ringgit is undervalued strongly - by 28%. This is another opportunity to make money. " Commodities have reached the bottom. US markets, on the other hand - at the very top. Consequently, there is a risk of subsidence in almost any time. And it will happen as usual unexpectedly for the majority of investors.