After global markets’ 16% drop over the past few weeks, it’s time for some positive momentum, investment expert Mark Mobius told Bloomberg on Monday. Mobius said he expects commodity prices and stocks to rise, and he doesn’t anticipate that the U.S. will experience a double-dip recession due to the high probability of more economic stimulus.
“At this point, I do think we’re bouncing along the bottom,” said Mobius, in a phone interview with Bloomberg. “For us in equities, it’s particularly good, because people will eventually realize that to beat inflation that’s coming as a result of this higher money supply, we’re going to have to be into equities.”
Mobius, who is based in Hong Kong, is executive chairman of Templeton Asset Management’s emerging-markets group and helps manage about $50 billion in assets.
He anticipates the Federal Reserve to print more money and buy more Treasuries. As a result, Templeton is buying commodity stocks, as it expects raw material prices to rise.