Stocks are a relatively safe place to be as inflation fears mount, Mark Mobius, chairman, Templeton Emerging Markets Group, told CNBC Monday.
The European Central Bank will most likely raise interest rates as soon as Thursday, while the most hawkish Federal Reserve officials have turned the volume up on voicing their fears that prices will rise.
"As you know, equities are one of the few investments that you can make that are going to adjust to inflation," Mobius said in an interview.
"There's always inflation. No currency will hold its value. Not even the Swiss franc ," he added.
Mobius said that a good investment strategy is not to look at what happens today but at what is likely to happen in five years. Most investors, he said, look at the next month, next six months or the next year.
"In order to be different from the crowd you have to look forward 5 years," Mobius said, adding that his focus when sizing up stocks is their return on capital, the size of their margins, and whether they are growing or not.
Emerging markets will continue to grow faster than developed ones and the balance of power is changing, Mobius said: "There's definitely a shift and we've not only seen it here in Asia but in Latin America, in Africa."
"These countries are leapfrogging … that means the whole process (of development) is accelerating. Taking the latest technology, not having to go through all the steps in between," he said.
Watch for more "Masters of the Market" interviews on "Squawk Box" this week and next week, 6-9am ET on CNBC.