Yes way to go

SHANGHAI: The next “bull-market” rally has begun and there are bargains in every emerging market following a record slump in stocks, Templeton Asset Management Ltd.’s Mark Mobius said on March 23.

The MSCI Emerging Markets Index has jumped 23% since reaching a four-year low on Oct 27, outperforming the 2.5% drop in the MSCI World Index and 9.5% decline in the Standard & Poor’s 500 Index. Emerging markets made up the 10 best-performing benchmark gauges this year, led by the 26% gain for China’s Shanghai Composite Index.

“You have to be careful not to miss the opportunity,” said Mobius, who helps oversee about US$20 billion of emerging- market assets as executive chairman at San Mateo, California- based Templeton. “With all the negative news, there is a tendency to hold back.”

Emerging markets are in “better shape” than developed economies, Mobius said. The fund is looking for companies that are “cash-rich,” have low debt and higher dividend yields, or those that can invest for future growth yet have cash left to pay shareholders, he said.

A company’s participation in derivatives is warning against some stock selections, Mobius, 72, said in a Bloomberg Television interview from Hong Kong.

“No longer are we satisfied with the explanation that ‘oh, it’s just plain vanilla,’” given the huge losses incurred at financial companies, he said.

Mark mobius commented again, sit tight and enjoy the ride

It Might follow Maybank, hopefully