Emerging markets fund manager Mark Mobius believes stocks in BRIC countries are likely to rise by 30% -40% within three to four years.
The chairman of Templeton Asset Management Ltd., said he is increasing holdings in all emerging markets [EMs], but remains particularly focus on the four biggest developing-nation economies: Brazil, Russia, India and China, collectively known as the BRICs. According to Mobius, the combination of growth with lower government debt will reinvigorate these economies and spur corporate earnings.
[Bloomberg]”BRIC countries are really at the top” of our favorite holdings, Mobius said in an interview in Istanbul today. “You can see BRIC countries have been best performing….while a sudden violent correction is likely in a bull market, investors should be ready to buy,” he told reporters.
Mobius thinks that while developed economies may contract 4% this year, EMs as a whole may avoid a contraction with zero change in GDP.
Considered to be one of the leaders in the industry, as he has been involved in these markets (EMs) for over 40 years, Mobius is of the opinion that the biggest growth areas in emerging markets are in the consumer and commodity industries, with China and Brazil offering among the cheapest stocks worldwide.