China is No.1, India is No. 2 global hot spot: Mark Mobius

Over the last four or five weeks, hopes have been raised that we may slowly be clawing out of this vicious bear market that has plagued this world for the last one-and-half-years. We don’t know whether the process of rebuilding and recovery has started but some experts are beginning to say, for the first time since 2008, that the correction has happened and feel the economy is slowly getting out of the woods.

Mark Mobius, Managing Director of Templeton, also christened as emerging market guru, signaled it a few weeks back, in early March, when the world was collapsing or the world of equities was collapsing. That time he said he saw great value in emerging markets and many global equity markets may see a very good rebound. 

In an exclusive interview with CNBC-TV18's Udayan Mukherjee, Mark Mobius said that market is currently building a base for the next big bull rally, which can be clearly seen “If you look at the valuations, flows of funds, the amount of money being printed not only by the United States but also by the governments around the world. If you look at money supply — as soon as the velocity of that money increases then you will have a bull market in a big way,” Mobius said, adding that he sees a retest of the lows seen in October but those lows won't be broken.

The worst for the markets is over, Mobius said. “The money supply is increasing in a fast pace, inflation is coming down and with that interest rates are coming down as well. All of these factors have a hand to play in pushing stock market prices up.”

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