Templeton’s Mark Mobius, who runs $25 billion in emerging market investments, remains a long-term bull.
Yet he thinks that the Dubai debacle could easily trigger a 20% global market correction, given that it’s about time for the bull market to take a breather.
“How serious will the fall out be?”
“…I think it will be pretty serious. If Dubai were to default, it would cause a wave of defaults in other areas.”
“How should investors be looking at emerging markets?”
“…There’s no question about an ongoing bull market, that’s certain. But we will certainly see corrections and this may very be the trigger for the markets to pull back.”
“…A 20% correction is not unusual in such bull markets, that’s quite possible. So we should be ready for that kind of correction.”