Emerging Markets Undoubtedly Still the Best Long-Term Play

Mark Mobius, Executive Chairman of Templeton Emerging Markets Group, discusses investment in Malaysia, dealing with issues such as stock valuations, how he is turning bullish for the first time in a very long time, how the government is proactvely seeking economic and public sector reform and what it takes to succeed. He talks about what he likes about Malaysia? And dislikes.

And as well, discusses derivative-related market risks in Malaysia.

Additionally, he discusses China-centric issues like the stocks he is said to be keen on, such as manufacturing and consumer counters, and that he is not keen on banks (citing concerns about non-performing loans). He also addresses the issue of why Hong Kong is still a more popular destination than Shanghai given the interest in doing business in China.

In addition he also talks about US pressure on China to allow its Renmimbi to appreciate, and as a corollary, how China is becoming a more domestically-oriented economy.

As for Indonesia, Mobius also talks about how he like Indonesia, where its resources, large and young population are factors, as well as the fact that Jakarta, the capital, is expected to be the largest city in the world within two decades. And that long-term, Indonesia could even join that Exclusive BRIC club.

Additionally, Mobius also addresses equities generally, with lots of pessimism about developed-economy markets and their currencies, and a lot of reallocation towards precious metals like gold and EM markets and currencies. And whether the sharp rise in EM currencies can be seen as unhealthy.