Mark Mobius Sees Downside Risks In Emerging Stock Markets

Mark Mobius sees downside risks in emerging stock markets due to the coming IPO`s:

“When you look at the size of some of these IPOs, they’re pretty massive,” Mobius, 73, who oversees $34 billion of developing-nation assets at Templeton Asset Management Ltd., said in a telephone interview from Tokyo.

“At the right price, the IPOs will be absorbed, but you’re going to have some hiccups. It’s too much supply coming out.”

Marc Faber expressed similar concerns today, “There are some clouds on the horizon. For sure, the supply of equities (in emerging markets) will go up because the valuations are up.”