Mobius Says Emerging-Market Rout Near End as Valuations Lure - Bloomberg

Mobius Says Emerging-Market Rout Near End as Valuations Lure - Bloomberg:



"The selloff that triggered the worst start for emerging-market stocks in four years is approaching the end as valuations begin to look attractive, Templeton Emerging Markets Group’s Mark Mobius said.



“We are nearing the point where people are beginning to say ‘hey, it looks pretty good now in terms of valuations,’” Mobius, who oversees more than $50 billion in developing-nation assets as an executive chairman at Templeton, said in an interview on Bloomberg Radio today. “We are probably nearing the end of this big rush out of emerging markets.”



The comments mark a shift in sentiment for Mobius, 77, who said on Feb. 7 that developing nations could “expect a lot more selling.” The MSCI Emerging Markets Index climbed 0.9 percent to a two-week high at 4 p.m. in London, trimming this year’s drop to 5.8 percent. The selloff dragged the index’s valuation to less than 9 times projected 12-month earnings on Feb. 4, the cheapest since August and compared with a multiple of 14 for the MSCI World Index of developed-country equities."



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