Mobius: Emerging market stocks are breaking out
For a moment forget that Mark Mobius is talking his own book. He suggests in the video below that we are in the early stages of a new bull market for emerging markets. He does not suggest that it will be off to the races from the word go, however. Mobius thinks we are base-building right now.
Mobius is primarily buying stocks with P/E ratios of under ten, of which there are many in the emerging markets. He sees Hong Kong-listed Chinese stocks as the number one place to go (remember that Chinese stocks were decimated in 2008). He favors Brazil, Turkey and Russia as well.
Now, Mobius was making the same comments back in December and I was skeptical. Nevertheless, many emerging markets had their lows in November and December (much earlier than most of the larger Western markets, where lows were registered in March). They have not looked back in the last 5 months.