Mobius Says Argentina Stocks Cheap, But Liquidity Still a Drag
- Franklin Templeton chairman prefers banks, telecom stocks
- 120-day limit on portfolios barrier to investment, Mobius says
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Almost a year after a new government swept into Argentina promising to loosen capital controls and lure foreign investors, Mark Mobius is betting on the country’s stocks. But he says the options are still limited for traders looking to ride the rally that made the Merval one of the world’s top performing equity gauges this year.
Mobius, executive chairman of Templeton Emerging Markets Group, which has $26 billion under management, says he will remain focused on American depository receipts of Argentine companies as long as rules require that portfolio investments stay in the country for 120 days, a policy that he says limits market liquidity.