Mark Mobius Doesn’t See Double-Dip in Global Economy Coming

By on August 12, 2011

Franklin Templeton’s Mark Mobius was interviewed regarding his views on the current investment landscape by CNBC and Reuters Insider. Mobius felt there wouldn’t be a double-dip recession because of his interpretation of what Ben Bernanke recently said.

Regarding a QE3 program, Mobius is confident it will be implemented by the Fed soon. It won’t be called QE3, but “that’s the reality,” according to Mobius.

Mobius said we are definitely going to see growth in the U. S. and other parts of the world and we’ll see a surge in the Purchasing Managers Index (PMI) as a result of recent easing.

Mobius made some interesting comments regarding emerging markets in both interviews.

According to Mobius, oil demand continues to be at “a high pitch” in the emerging markets. He expects the oil market to trade up or down by 20%, but demand to continue to rise over time. He uses $70 a barrel as a benchmark. If a company can’t make money at that price he won’t invest in it.

Mobius added that there are electricity shortages in China because there isn’t enough oil and coal available. He indicated the demand for power in the emerging markets is increasing every day because of the popularity of cell phones, computers and iPads.

Regarding strategy, Mobius said he was not investing in new areas, but buying more of what the fund holds (commodity and consumer companies) at lower prices.

CNBC’s Jim Cramer asked Mobius which markets had been punished the most in the recent downturn. Mobius said China, Turkey, and Argentina came to his mind as markets that were way off their highs.

Mobius respects the views of those in the German government who say we’re all going to have to take some pain.

Mobius had some positive things to say about the large Brazilian companies (Petrobras, Vale, and Unibanco), although he couldn’t say he was buying them.

Reuters Insider interview:

CNBC Interview:

4 Comments

  1. Squire Hudson

    August 12, 2011 at 3:21 pm

    Me thinks Monsieur Mobius is too optimistic in his forecast for oil. The price will collapse as it did in 08. The sovereign bankruptcies will crash all markets.

  2. Amanda Bendoferfore

    August 13, 2011 at 9:50 pm

    Screw the French.

    • Barron Maestro

      August 14, 2011 at 12:02 am

      France is Europe’s 2nd largest economy (behind Germany), and 5th largest in the world. The French have some very attractive companies to invest in right now. Cramer pointed out the virtues of Sanofi-Aventis (SNY) last week. Total (TOT) appears to be underpriced and yields over 5%.

  3. Berry McCaulkiner

    August 15, 2011 at 12:24 pm

    Every country in the world has “some” very attractive companies in which to invest. I am inclined to agree with Amanda.

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