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Investors Can Profit From 'Inevitable" Financial Crisis: Mobius

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Published: Tuesday, 7 Jun 2011 | 11:31 AM ET
By: | Special to CNBC.com

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."

Emerging Markets Opportunities
Mark Mobius, Templeton Emerging Markets Group shares his strategy for overseas investments, with CNBC's David Faber.

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.

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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."
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