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"Resource Investor" - Physicals
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08 April 2015
Mark Mobius' top conviction: Buy commodities 9 Hours Ago | CNBC.com
After an over 50 percent collapse in oil prices between June 2014 and January this year, stability has returned to the crude market in recent months.
However, the same cannot be said for other commodities such as iron ore – which saw prices plunge to a decade low earlier this month on concerns over a glut of supply. Mobius, however, expects supply-demand imbalances in the commodities sector will correct over time.
"Demand for iron ore and all these commodities is going to continue. Of course we've had a slump recently, but global economic growth continues. This is just temporary," he said.
On iron ore, for example, he said the price declines will force many marginal producers to shut down production resulting in a more balanced supply-demand environment.
While the price outlook for many commodities remains bleak, veteran investor Mark Mobius recommends positioning for a recovery in the beleaguered asset class.
"Right now it's commodities believe it or not, they are so far out of favor," Mobius, executive chairman at Templeton Emerging Markets Group, told CNBC when asked what his top conviction call was.
"No one knows what's going to happen next in terms of the military situation in the Middle East, so oil is something you've got to watch. I think there will be a recovery," he added.
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Mobius: buy Commodities


