Mark Mobius: Here’s what investors need to ‘see through’ if they want to make money

Investors who run the other way when they hear negative headlines are making a big mistake, according to Mark Mobius of Franklin Templeton.

"Situations like we see in North Korea, what we're seeing in the Middle East will be with us for quite some time. But that doesn't mean countries don't continue to grow," he said in a Tuesday interview on CNBC's "Trading Nation."

"We're going to see continued growth," and investors should "see through" negative headlines to the underlying fundamentals, said Mobius, executive chairman of Templeton emerging markets group.

"If you look at the price charts, in dollar terms, for a place like Brazil or India [that] from one time to another has bad headlines, the reality is that stock prices continue to go up in dollar terms, so we've got to keep an eye on those prices," he added.

His remarks come as Bank of America Merrill Lynch's fund manager survey showed that investors are becoming more optimistic about the emerging markets, which include China, India, Brazil and Mexico. Investors "aggressively" bought emerging market stocks in April, propelling allocations to five-year highs, according to the report.

Looking forward, investors ought not to be deterred by a rising interest rate environment in the U.S., according to Mobius.

When considering investing in emerging markets, people have been "so afraid of higher interest rates, not realizing that higher interest rates in the U.S. don't necessarily mean a down market; sometimes interest rates go up and the markets go up. And this has been happening with emerging markets; emerging markets are going gangbusters," Mobius commented Tuesday.

While Mobius deemed India a strong pick out of the group, citing tax reform under Prime Minister Narendra Modi, he also sees opportunity in Brazilian equities.

The market is a "long way" from its five-year highs, he said, but he is highly encouraged by the reforms to be implemented in the months following the impeachment of former president Dilma Rousseff.

"Generally speaking, the long-term trend is very good," and pullbacks would present buying opportunities, he said.


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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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