Mobius is focused on South Africa and Brazil. South Africa has a robust consumer sector in spite of the troubling mining strikes. Companies have shifted their operations to the northern part of the continent and are selling to the rest of the world.
The South African equities market is the 18th largest in the world. That provides ample liquidity and, with global sales, presents a compelling reason for investing.
Consolidation is also beginning to occur and investors should do their research to ensure they pick the consolidators, not those being swallowed up.
Mobius also likes the varied economy of Brazil but says its currency is too high. But the growth in commodities and the active consumer market makes Brazil attractive, as well.
Some investors, particularly retirees, may consider emerging markets investments in seeking higher returns. It’s a great opportunity to educate them since many likely do not fully understand the risks.

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