Investors should start looking at emerging markets for their portfolio as the fundamentals compared to the developed world are compelling at the moment, Mark Mobius, executive chairman of Templeton Asset Management, told CNBC Thursday.
"The fundamentals are very clear," Mobius told "Worldwide Exchage”.
Foreign exchange reserves in emerging markets are much greater than those in developed countries, the fiscal situation is much better in emerging markets and debt as a percentage of gross domestic product is much better, he said.
In addition, the large amount of spending the United States and other countries are doing has yet to be felt by other countries, Mobius said.
"When it does, watch out," he said. "I think stock prices will go up."
- Watch the full interview with Mark Mobius above.
China is Mobius' top pick for investors, because it is most capable of boosting its domestic economy.
Brazil is No. 2 on the list, with banks of particular interest. And Turkey and South Africa are also attractive, with lower interest rates likely to boost consumer spending, he said.