Fantastic new commentary out by Mark Mobius, he goes into talking about the fundamentals, foreign reserves and investment sentiment in emerging markets, see below for a snippet.

According to the GISS, 58% of investors residing in developed markets believe their local stock market will be up this year, but investors in emerging markets were even more upbeat – 66% believed their local stock market would post a bullish performance in 2013. Similarly, investors residing in emerging markets expected higher returns on their investments, with an average return expectation of 12% this year and 18% over the next 10 years. Those in developed markets expected a 7% average return in 2013, and 10% over the next 10 years. I find that noteworthy as growth rates in emerging markets are also expected to be generally higher than in developed markets this year, although stock market returns don’t always directly correlate with growth rates. In addition, we believe the easy monetary policies of central banks globally could drive more assets into emerging markets.

Source: Franklin Templeton