Mobius Sees Derivatives Leading to Another Crisis

Templeton Asset Management’s Mark Mobius says the continuing use and growth of derivatives in financial markets is going to lead to another financial crisis.

“There is definitely going to be another financial crisis around the corner because we haven’t solved any of the things that caused the previous crisis,” Mobius says, according to Bloomberg. “Are the derivatives regulated? No. Are you still getting growth in derivatives? Yes.”

Mobius says, however, that crises mean opportunity. “With every crisis comes great opportunity,” he said, adding that when markets crash, “that’s when we’re going to be able to invest and do a good job”.

One area Mobius is finding opportunity: Nigeria. He says the country has “incredible” investment potential, and he likes some of the country’s banks. “These banks are doing very well and are much better regulated than they were in the past,” he said.