Mark Mobius: China’s Stock Market May Be Largest in 3 Years

By on November 3, 2009

Nicholas A. Vardy, Editor, The Global Guru, writes that it doesn’t matter if the U. S. is in decline, the rise of the rest of the world will create growth opportunities for investors. He specifically cites the case of the emerging markets which have 30% of the world’s population. Vardy notes that China’s car market now surpasses the market in the United States. Mark Mobius, Templeton Funds, is quoted as saying China’s stock market may surpass the United States as the world’s largest by value in as little as three years.

SMA Comment: Although the emerging markets should grow at rates faster than the U. S., Europe and Japan, they too have been prone to booms and busts. Even more so than the developed world. Investors should be vigilant and ready to pare back their holdings should emerging market valuations reach bubble levels.


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