Mobius: Global stocks set for 30% fall

Franklin Templeton emerging markets guru Mark Mobius said global stocks were likely to face a correction of up to 30% some time this year.

Speaking to Bloomberg in Kuala Lumpur, Mobius said the fall could happen at "any time", believing the risk lies in the increase of initial share sales and bond issues. "When you have these rapid increases, almost without correction, you will definitely have a correction at some point, so we can expect a lot of volatility," Mobius said. "Increases of 70% will be followed by decreases of 20 to 30%." With the MSCI World more than 50% higher since its March low, Mobius said investors will be "selling to take up new stocks, that will impact the prices". Mobius said the correction cou...