ID :
149233
Tue, 11/09/2010 - 10:03
Auther :
Shortlink :
https://oananews.org//node/149233
The shortlink copeid
US QUANTITATIVE EASING POSITIVE FOR EMERGING MARKETS, SAYS FRANKLIN TEMPLETON
KUALA LUMPUR, Nov 8 (Bernama) -- The second quantitative easing by the US
Federal Reserve is positive for emerging markets and will encourage money to
flow into the region amid higher returns, according to Franklin Templeton
Investments.
"There seems to be a large consensus that quantitative is positive for
emerging markets and a high portion of the money will go to emerging markets,"
said its international chief investment officer Stephen Dover at a media
briefing here Monday.
However, he cautioned that finance ministers in Asia would have a tricky job
over the next few months to try and prevent speculations.
Dover said that Franklin Templeton was positive on Asian currencies over the
long term as well as fixed income investments.
He advised investors to diversify their fixed income portfolio to include
those outside their local currency.
"It makes sense to have diversity and put a portion of money in global bonds
and global fixed income assets," he said.
Dover said the US dollar could be weaker relative to Asian currencies but
not necessary weaker relative to the euro and Japanese yen over time, adding
that the potential for currency appreciation also attracted investments besides
the growth in emerging markets.
The ringgit was at quoted at 3.0925 against a weakening US dollar as US lawmakers pursue their quantitative easing measures which increase the supply of the US dollar, which has devalued the currency.
Dover also indicated that he was generally positive on Malaysia, saying that it has an advantage in the areas of soft commodities given concerns over global food production, as well as the Islamic bond market.
He said that Franklin Templeton planned to use Malaysia as a strategic hub to try and broaden its management of global sukuk products.
According to Dover, volatility is a good reason to make regular investments and investors should have a long-term investment strategy and a clear view of how much equity they want to have in their portfolio and keep that consistent over a period of time.
"In our experience, we found that investors who try to look in and out of the market typically lose rather than gain," he said.
Federal Reserve is positive for emerging markets and will encourage money to
flow into the region amid higher returns, according to Franklin Templeton
Investments.
"There seems to be a large consensus that quantitative is positive for
emerging markets and a high portion of the money will go to emerging markets,"
said its international chief investment officer Stephen Dover at a media
briefing here Monday.
However, he cautioned that finance ministers in Asia would have a tricky job
over the next few months to try and prevent speculations.
Dover said that Franklin Templeton was positive on Asian currencies over the
long term as well as fixed income investments.
He advised investors to diversify their fixed income portfolio to include
those outside their local currency.
"It makes sense to have diversity and put a portion of money in global bonds
and global fixed income assets," he said.
Dover said the US dollar could be weaker relative to Asian currencies but
not necessary weaker relative to the euro and Japanese yen over time, adding
that the potential for currency appreciation also attracted investments besides
the growth in emerging markets.
The ringgit was at quoted at 3.0925 against a weakening US dollar as US lawmakers pursue their quantitative easing measures which increase the supply of the US dollar, which has devalued the currency.
Dover also indicated that he was generally positive on Malaysia, saying that it has an advantage in the areas of soft commodities given concerns over global food production, as well as the Islamic bond market.
He said that Franklin Templeton planned to use Malaysia as a strategic hub to try and broaden its management of global sukuk products.
According to Dover, volatility is a good reason to make regular investments and investors should have a long-term investment strategy and a clear view of how much equity they want to have in their portfolio and keep that consistent over a period of time.
"In our experience, we found that investors who try to look in and out of the market typically lose rather than gain," he said.
