Maybe it’s too much sun in the Singaporean clime. Legendary emerging markets investor Mark Mobius is bullish—yes, bullish—on Europe.
“This will go on, back and forth for a long time,” he said. “They have to agree on fiscal responsibility and adhere to certain principles they have not had to do before. It’s a big change, but I think they will make these reforms and Europe will emerge much stronger than ever before.”
Mobius, who oversees $50 billion in assets, is predicting Europe will have the framework for a fiscal union in place within one to two years.
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He adds that investors who stay in safe havens for too long will miss an ensuing rebound in global markets.
“During the subprime crisis everyone was in a panic, everybody got out of all markets and rushed into U.S. Treasurys,” he told the network. “They learnt a bitter lesson because within 12 months, (many) markets were up 60%, 70%, 80%, 90% to 100%.