Mark Mobius Says the European Crisis Isn’t Terrible
Amongst the shrill of voices calling for the complete and utter destruction of the European economy, the calming voice of Mark Mobius, chairman of Franklin Templeton’s Emerging Markets Group, says there is nothing to worry about. He expects the crisis to be resolved by the middle of this summer.
However, Mobius did see one major risk to investors.
Mobius, who oversees $50 billion in investments, said investors were overstating the potential impact of the Euro crisis. However, he is concerned about the size of derivatives contracts tied to European sovereign debt which, by his estimation, offer real risks to investors.
Brazilian newspaper Valor Economico quoted Mobius as saying, “The European crisis isn’t as deep and terrible as people think.” He indicated that the negotiations being conducted would take some time.
Mobius had nice comments regarding the Brazilian economy.
Back in August, Mobius did not expect the global economy to suffer from a double-dip recession (link).
Source: Financial Times