Bond market money flows continue to reflect a bearish setup into strength.
US Treasury Bond 20YR+ (TLT) And US Treasury Bond Diffusion Index (DI)
Headline: Mobius: US Dollar, Treasurys No Longer Safe Havens
The U.S. dollar and Treasurys, which proved to be safe havens during the global financial crisis, can no longer be viewed as such because of the on-going debt impasse, renowned investor Mark Mobius told CNBC on Friday.
Instead, Mobius, who oversees about $50 billion as executive chairman at Templeton Emerging Markets Group said emerging markets were now a much safer bet.
Mobius believes a shift is under way towards emerging market stocks and said that he was bullish on commodities and gold.
“Commodities are a very big part of our portfolio because we believe in dollar terms that commodity prices will continue to trend upwards,” Mobius said.
Despite the debt crisis and a pullback in purchasing managers indexes in the U.S., India and China, Mobius said investors shouldn't be worried about another global recession.
"The consumer is alive and well and kicking both in the U.S. and in emerging markets, so I'm not too frightened. The consumer has lots of cash to spend and they want to spend, because they don't want to hold currencies," Mobius said.
Source: cnbc.com
