Mark Mobius, a veteran investor in developing nations, said now is the time to buy their assets and favors India, Brazil and Turkey.
“We’re particularly interested in India at this stage," Mobius said in a Bloomberg TV interview in Singapore on Friday. “I just came back from a two-week trip to India and I was just amazed at the changes taking place."
Mark Mobius cited “terrific recovery" in many of developing economies as reasons for investors to buy after all assets -- stocks, currencies and bonds -- suffered a losing year in 2018 amid concerns over the U.S. - China trade war and a Federal Reserve’s tighter monetary policy.
“It’s quite incredible, and of course you’re looking at 7 percent growth for a country that size, it’s very impressive," he told David Ingles and Rishaad Salamat, referring to India.
Mobius, who set up Mobius Capital Partners LLP last year after three decades at Franklin Templeton Investments, said this is where he would put his money:
"30 percent in India, 30 percent in Latin America, including in Brazil and Argentina, 30 percent in Eastern Europe like Poland and Romania. The rest in China and other parts of Asia," he said.
Valuations for developing-market equities are very attractive and much lower than in developed countries, he said, citing price-to-earnings ratio and price-to-book value.
Trade issues won’t be a big downer and other countries will take up the slack from China Venezuela would be interesting if there’s regime change.