The emerging markets have seen some tremendous gains in their stock markets over the past year, easily beating the U.S. and Europe. So is it a bubble—and if so, does the Dubai crisis prick it? John Lekas, chief executive and portfolio manager of Leader Capital, provided his insight.
“Ultimately, what’s going to happen is the dollar is going to approach its all-time low,” Lekas told CNBC.
“It will break and that break will cause a blow-off in the market—and then we’ll begin seeing and realizing the real problem of a falling dollar.”
Lekas said the falling dollar will help Dubai as oil prices move up, but it will only be temporary.
“I do think we’re approaching a bubble here,” he said.
- Watch Lekas' Previous Appearance on CNBC (Oct. 16, 2009)
More Market Views:
- Forget Dubai 'Noise'—Stay Fully Invested: Strategist
- Gartman: My Commodities Outlook after Dubai
- Dubai is Harsh Reminder of Prolonged Recovery
CNBC Data Pages:
No immediate information was available for Lekas or his firm.