Mark Mobius of Templeton Asset Management spoke with reporter Francine Lacqua of Bloomberg Television about the state of emerging markets growth. Mobius thinks that, in the long run, the euro is going to be great, but that it has pain to go through now.
- 0:40 Hungary getting its citizens ready for hard economic times, info leak was not meant for foreign consumption.
- 1:40 Some of the Eastern European markets are looking appealing, namely Poland, the Czech Republic, Russia and perhaps even Romania.
- 3:25 "From a long range point of view I think the Euro is great and I think more countries should join."
However, I think he is right on the Euro, applying the old saying of "what doesn't kill you, makes you stronger", and I believe the Euro-zone has been strengthened.
Germany is getting the advantage of a much lower exchange rate than they would otherwise have. Without the Euro, their currency would be massively overvalued and that would kill their manufacturing just as our overvalued currency has helped kill ours.
In plain English, unfortunately the Euro is toast. It's a shame because it was originally a good idea, and the world needs something to assist in moving away from dollar hegemony, but it won't be the Euro.
Also stick to trading fundamentals. A market in a massive DOWNTREND making new LOWS, is not a great buy. Mark - you may wish to consider the last sentence for any future trades - it might help you to make some money.