According to a recent Bloomberg article, Mark Mobius from Templeton Emerging Markets Group is buying Argentine stocksthat are trading at their cheapest levels in almost three years.
“Although the political environment is not very good, thecompanies are very cheap so we’re looking closely,”
So-called “frontier markets” such as Argentina, Nigeria andKenya offer faster growth than other emerging markets, Mobiussaid during a trip to Latin America this week.
I love Latin America
Mobius is also adding Brazilian, Chilean, Peruvian andColombian stocks.
“We are very interested in the Latin American consumerbecause in almost every measure they have incredible potentialto grow,” he said. “Latin American growth will be very goodthis year, with expansion between four and five percent.”
A China Bull
Chinese demand for consumer goods and commodities willcontinue unabated “for some time,” he said. “People are always asking me if China is going to have asoft or a hard landing, and I’m telling them it’s not going toland.”
The whole world is hoping that his China predictions are correct. But don’t get too excited yet… his Templeton fund lost23% in 2011 versus the MSCI Emerging Markets index’s 18% decline. Perhaps he’s been buying too many Argentinean and Nigerian stocks…