Volatility To Continue
Economists said reports this week may show U.S. companies ordered less equipment in July, and that the economy grew even less in the second quarter than previously estimated.
"It's not certain to us what the Federal Reserve can say to calm people's nerves," Don Williams, chief investment officer at Platypus Asset Management Ltd. in Sydney, said in a separate Bloomberg Television interview today. "This period of volatility that we're in has still got a way to play out."
Global stocks will rise even amid investor concern that Europe's sovereign debt crisis may be prolonged by German Chancellor Angela Merkel's resistance to calls for common euro- area bonds, according to Mobius.
The region's crisis is moving toward a resolution after European Union pledges this year to stabilize the euro-area economy and stave off a Greek default, Mobius said.
"I believe the situation in Europe will get better now that they have a facility to bail out these countries," he said. "But in the meantime, the loss of confidence has really hit both sides of the Atlantic, and that's something that's going to have to wear away as we go forward."
Mobius said today he remained interested in consumer stocks, as well as equities in emerging markets such as Brazil, China, Thailand, Indonesia and Russia. On Aug. 5, he told Bloomberg TV that emerging economies were in "better shape" than developed nations amid the turmoil roiling global markets.