Not everyone is convinced the widely anticipated pullback in the U.S. Federal Reserve's bond buying is sounding a death knell for emerging markets.
"This fear of tapering is quite overdone," Mark Mobius executive chairman of Templeton Emerging Markets Group, told CNBC, even as shares in Indonesia dropped nearly 4 percent on Monday, and those in Thailand shed more than 2 percent. Franklin Templeton manages around $834.1 billion.
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"What people fail to realize is that the so-called tapering is on top of an incredible increase in money supply in the U.S.," he said. "These QE programs have been cumulative. It's not a situation where one stops and all that money goes away," he said. "It stays in the system."
The U.S. central bank is widely expected to begin scaling back its $85 billion per month bond buying program, possibly as early as September, in a move likely to spur rising interest rates.
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"You're going to see more money going into emerging markets," Mobius predicted. He noted that while emerging market fixed income funds have seen net outflows recently, fund flows for the segment's equity funds have actually been flat.