The US Federal Reserve's decision to postpone the withdrawal of its monetary stimulus doesn't change investment prospects for emerging markets, says Mark Mobius, CEO of Templeton Emerging Markets Group. The asset-management firm has $54 billion invested in emerging market assets, with $4.5 billion in Brazil. In an email interview, Mr. Mobius again criticized the strong government intervention in the private sector but expressed continued optimism about investing in some Brazilian companies.
Source: Valor International
In a blog post yesterday, Mr. Mobius wrote that the emerging-market weaknesses perceived by investors haven't been analyzed withing the “proper context.” He says the worries over the health of emerging countries were motivated by political transformations in Egypt, the economic slowdown in China and recent protests in Brazil and Turkey.
“They [investors] have come to the conclusion that emerging markets are finished, particularly, they say, as the US Federal Reserve (Fed) is expected to turn off the money tap, depriving emerging markets of needed liquidity to protect their weakening currencies and pay their debts,” Mr. Mobius wrote. But he defended that these countries are better protected than at previous crises, with plenty international reserves, and are less indebted.
Source: Valor International
