Templeton Asset Management’s Mark Mobius says investors should be ready for a 20% correction in emerging market stocks, triggered by Dubai’s attempt to delay its debt payments and compounded by the devaluation of the Vietnamese currency.
“This may be the trigger to allow for the market to take a rest and pull back,” Mobius told Bloomberg. “A 20 percent correction is not unusual in such a bull market, so that’s quite possible and we should be ready for that. There’s no way that anyone can specifically predict exactly when and to what extent, but certainly there will be corrections along the way.”
Mobius said he remains bullish on Vietnam, but added that “over the short and medium term we have to look very carefully at what’s happening.”