More More More! Just Not Right Away

This morning we’ve got video out from Marc Faber and Mark Mobius each taking somewhat different paths to the same conclusion; the need for more emerging/frontier exposure.

Faber thinks that the money printing means the good times will last a little longer before the developed world stops rotating on its access in a few years (slight hyperbole, only slight though). Mobius is a smaller picture guy honing in on the prospects for various countries in his universe.

Mobius mentioned Kazakhstan as an investment destination for the future. Learn the story about what they have in the ground there it is vast. If commodity prices stay high or go higher then Kazakhstan will become wildly wealthy. Unfortunately there is corruption and mismanagement that for now are formidable obstacles. One name I have heard of is Kazakmys which trades in London. The pick sheet ticker is KZMYF.

Mobius also mentioned adding to positions in bank stocks from Eastern Europe during the decline. If he was adding to those positions that means he got caught in them during the decline. That he held on and then added on should convey an important message to anyone considering following these guys to having more emerging exposure; big declines, really big, come along every now and then and you will get caught in them sometimes. This does not invalidate the exposure assuming proper asset allocation.

One thing not mentioned in any of the videos was that this is a slow moving ship. Faber’s very gloomy forecast won’t, if he is right, play out for several years. If you agree with the need for more emerging market and frontier exposure fine, but you do not need to panic into that sort of allocation.

I think Kazakhstan has all the makings for being a fantastic investment destination but that could be years away.

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