When everyone else is selling, Franklin Templeton is ready to buy.
The flight of investors from emerging market currencies has opened up opportunities for the $894 billion Franklin Templeton Investments, reports Bloomberg. Money manager Eric Takaha says there is value in Mexican and South Korean bonds after developing-market currencies plummeted in March.
Emerging markets have dipped as traders moved back to the U.S. in hopes of interest rates rising in the near future. But the U.S. economy has continued to drag behind the growth forecasts for countries like South Korea and Mexico. Writes Bloomberg:
“We actually are finding select opportunities,” Takaha, who focuses on corporate and high-yield debt, said at a media briefing in New York on Thursday. “The market has sold off all currencies relative to the dollar during this period of time and we think there are certain countries in certain emerging areas that should have better growth profiles than the U.S. over the long term.”
Photo: Karl Baron via Flickr.