Investors Can Profit From 'Inevitable" Financial Crisis: Mobius

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Investors Can Profit From 'Inevitable" Financial Crisis: Mobius
Published: Tuesday, 7 Jun 2011 | 11:31 AM ET
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By: Margo D. Beller

Another financial crisis is "inevitable," Mark Mobius, head of Templeton Emerging Market Group, told CNBC Tuesday.

But that crisis is "no big disaster. In fact it could be an opportunity to buy cheap stocks again," Mobius said. "So I don't consider it a very bad thing to happen."

The financial problems created by the subprime mortage crisis "have not really been solved. Banks that were too big to fail have gotten bigger. Bank balance sheets around the world are not that healthy. So you have a situation which, if not corrected, will result in another crisis."

He said he doesn't know when this crisis will take place but his portfolio includes stocks "we think can survive such a crisis," including consumer stocks and commodities.

Mobius is cautious on China, keeping the emphasis on shares of oil companies and "anything related to consumer" including automobile manfacturers and department stores, which is where he sees the most growth.

http://www.cnbc.com/id/43310877
After the Revolution of 1905, the Czar had prudently prepared for further outbreaks by transferring some $400 million in cash to the New York banks, Chase, National City, Guaranty Trust, J.P.Morgan Co., and Hanover Trust. In 1914, these same banks bought the controlling number of shares in the newly organized Federal Reserve Bank of New York, paying for the stock with the Czar\'s sequestered funds. In November 1917,  Red Guards drove a truck to the Imperial Bank and removed the Romanoff gold and jewels. The gold was later shipped directly to Kuhn, Loeb Co. in New York.-- Curse of Canaan