Mark Mobius on CNBC

By on October 15, 2008

Yesterday, on CNBC, Mark Mobius expressed his views regarding developed, emerging and frontier markets. Mobius said the decline of 50% in the emerging markets was very similar to the Asian crisis in 1997-1998. Mobius believes the markets will “rejuvenate” much faster this time because of the attention to the problem provided by the world governments. “Extraordinary programs” is what he referred to them as.

Mobius pointed out that the roles had been reversed where the emerging markets were now the creditor nations while the debtor nations were the U. S. and those countries in Europe. Mobius believed we were seeing the “bottom of this,” but might see a few more declines, and there would be retrenchment in the economy, but it was being discounted.

Mobius pointed out that the emerging markets are very attractive given that they are growing at 4 to 5 times the rate of the U. S., Europe and Japan. Mobius spoke highly about the prospects of the frontier markets because they were “really bombed out.”
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2 Comments

  1. Jon

    October 15, 2008 at 3:44 pm

    What do you think of ETFs to lessen the risk? This site indicates there are a few, and gives a little more info on frontier market investments http://www.frontiermarketsetf.com , but I think an ETF may even be too risky. Thoughts? Thanks

  2. stocksystm

    October 16, 2008 at 4:04 am

    I believe if you’re going to invest in risky frontier markets, the best way would be to do it through ETFs. You should check the expense ratio on these funds. If they are out of line, I think I’d stick with emerging markets ETFs.

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