Beware of holding too much cash

High economic growth and corporate earnings is what he believes will make stocks rise in these markets.

The Economic Times reports Mobius saying that the biggest growth areas in emerging markets are in the consumer and commodity industries. He is also of the view that China and Brazil are among the cheapest markets worldwide.

Well, what's his best advice? It is important for people to be invested and not to hold too much cash at this stage of the game. While we completely agree with him on this count, we would like to add a word of caution. Being invested does not mean putting all eggs in one basket. It also does not mean buying anything and everything that is available. Investors must thus carefully make an attempt to diversify their portfolio and only buy at reasonable bargains.