Mobius survey upbeat on emerging markets

By bne IntelliNews May 16, 2013

bne -

Investment guru Mark Mobius expressed rising optimism for emerging markets on May 16, insisting investors are bullish on their performance over the next decade, despite the current economic problems affecting the globe.

Mobius noted in a blog that his fund - Franklin Templeton Investments - reports in its 2013 Global investor Sentiment Survey (GISS) that sentiment towards emerging markets remains upbeat compared to developed markets. The celebrity investor argues that emerging markets enjoy fundamentally stronger macroeconomic positions that will drive both growth and performance.

According to the survey, 58% of investors residing in developed markets believe their local stock market will be up this year. However, those in emerging markets were even more upbeat, with 66% anticipating a bullish performance from equities this year.

In fact, according to the poll, emerging market investors expect an average return of 12% in 2013, and 18% over the next 10 years. Those in developed markets see a 7% average return this year, and 10% over the next decade. Russia in particular is ripe for a turnaround. Equities in Moscow are currently trading at 50% below their normal discount to emerging market peers.

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