With that volume of bets in different directions, volatility and equity market crises will occur
Mark Mobius, executive chairman of Templeton's emerging markets group, has been bullish on emerging markets and in general, was optimistic on emerging market economies. Recently, he has sounded increasingly cautious on global economy.
At a recent gathering, he made the following points:
- Derivatives are not regulated and in fact, they are growing.
- The financial institutions are 'too big to fail'. They are even bigger today than pre-crisis.
- Business as usual, none of causes of the previous crisis has been resolved.
To summarize, Mobius stated that another financial crisis is around the corner. See here for a Bloomberg report.
Read more:
http://www.businessinsider.com/how-to-guard-against-another-financial-crisis-around-the-corner-2011-5#ixzz1O9fbm5eD
