Mark Mobius Talks About Credit Crisis


credit crisisMark Mobius appeared on Bloomberg this morning and talked about the credit crisis and his investment strategies. According to Bloomberg’s Hanny Wan and Catherine Yang, the head of Templeton’s Global Emerging Markets Equity Group said the credit crisis which is responsible for $245 billion of losses at banks and brokerages is “near the end.” Predicting that the worst of the crisis has passed, Mobius said:

Most of the bad news is already in the market. The writedowns are coming in fast and furious.

The veteran emerging markets investor also talked about his investment strategies. Mobius told Bloomberg that energy stocks are his biggest investment because of rising oil prices. He said:

Energy is by far the largest weighting in our portfolio. We don’t see any reason to change that any time soon.

Bloomberg noted that Petroleo Brasileiro SA, Brazil’s state-controlled oil company, and PetroChina Co., China’s largest oil producer, were respectively the biggest and third-biggest holdings in Mobius’ emerging market fund at the end of last year.

The famous investor has also been buying financials. He said:

We’ve been adding in the banking sector generally. Prices have come down to more reasonable levels.

Mobius noted that he has been buying shares of banks including Bank of China Ltd. and Industrial & Commercial Bank of China Ltd.

Mobius also added shares of Sweden’s Oriflame Cosmetics SA to his holdings recently. He invested in Oriflame, which sells natural makeup in more than 50 countries, to benefit from rising consumer spending in Russia. Bloomberg noted that shares of the company gained 68% in the 12 months through yesterday.

Finally, Mobius indicated that he also likes Malaysia. Bloomberg’s Wan and Yang wrote:

Prime Minister Abdullah Ahmad Badawi last month vowed to proceed with infrastructure projects to promote growth and pledged measures to help the poor, seeking to reassure investors after the government’s narrow poll victory.

Malaysian stocks are “becoming more and more attractive as a result of these political changes,” Mobius said. “There has been re-awakening so to speak, reassessing that Malaysia should be doing well and prosper. I think that’s good news and that could have good impact on the market.”

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