Europe situation “does not look good,” says Mobius

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Despite the sharp falls in recent weeks, commodity prices remain in an upward trend, and will move higher in US dollar terms over the longer term, while the situation in Europe “does not look good,” Mark Mobius, Chairman of Templeton Emerging Markets, told CNBC in an interview.

“We’ve got a long-term bet on commodities, simply because of the supply/demand situation. Of course as I’ve always said there’s going to be fluctuations and sometimes there’ll be a fluctuation of 20% as much as that. But over the long term, there’s no question, commodities are going to be up, in US dollar terms,” Mobius said.

Regarding Europe, Mobius commented: “It does not look good. Unfortunately the medicine that is being applied is the same medicine that was applied during the Asian crisis you know, which didn’t work. You’ve got to have growth, otherwise there’s no way you’re going to pay back your debts. So it’s something that I hope the European central bankers and leaders will think about carefully.”

Source: CNBC, May 16, 2011.

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