Investors Can Profit From 'Inevitable" Financial Crisis: Mobius

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.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Private Jet

    Like migrating birds, private jet setters follow a basic instinct when it comes to their flight paths: They follow better weather.

  • Fake Apple Watches... can you tell the difference?

    CNBC's Eunice Yoon reports Apple Watch is officially available today but already fake watches are hitting the streets.

  • Alphorn players perform in Nendaz, Switzerland.

    Switzerland is the happiest place on Earth, thanks to its high performing GDP and healthy life expectancy rates of its citizens.

U.S. Video