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Alibaba IPO is 'overhyped': Mark Mobius

8:33am BST - 04:10

With the Chinese e-commerce giant set to launch their IPO Franklin Templeton Investments' Mark Mobius gives his outlook for the Internet sector and emerging markets. Tara Joseph reports.

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That company on everybody's mind these days is Ali Obama. It's an emerging markets company that's really now making its name in New York in the -- world do you think this stock. It's actually over hyped. Definitely itself -- act. They've really. Done everything to hype this it's interesting that they flew into Hong Kong when they go back to New -- the next day except you're buying everything -- -- To create headlines so they've really. The job is telling the story. Against. A lot of negativity. We've seen congressional. Report. On the structure of the company. So do you think investors -- area and four of rough ride her and they going to guess what they expect from Alibaba. Well I think you know a lot of people who momentum investors. Who think that they can flip the stock after the IPO. As you know the experience they had with -- you know com. Initially was pretty good it went up to that he came down and the company was delisted. At about the same price as they waited so. For momentum investors. It might be good for people like us. This makes sense. Is the Internet sector actually leave the hottest sector out there is it like Silicon Valley was ten. Twenty years ago for emerging markets. Because no question that. The whole Internet. Space. Is going to be growing he's becoming more important already has become. Very important -- countries but a lot more to go. -- in emerging countries. Lot more growth there so it makes sense to get into some of these companies that will benefit from the growth of the country's. It's has been a volatile -- for emerging markets sop up and down but so far 2014. Has been a very good year for emerging assets do you. Expect him for volatility to continue. It involved the is increasing. In every. Market now on the imaging markets US market European markets. -- witness -- -- -- can't escape it. Because of me you know all of the financing available around the world while leverage. Christiane derivatives. So we have to expected volatility. So wit. On volatility. In mind that and other. Factors out there how are you playing emerging markets what is your strategy at this point. Well right now we're not that worried about the Fed because we have to look at the global picture and see who's printing and everybody's pointing at. The Fed has been printing Europeans have been thinking Japanese in the -- franchises printing. So there's a lot of liquidity around the world and you know you look at the amounts. In the banks not that utilize. Utilize that. This could he lives. New money going into markets globally known image about the development. How are you picking sectors and countries what's weighing most on your mind. Wasn't terrorist thing is that a lot of people think that that commodities over. I think commodity boom is finished we beg to -- We think that the demand for commodities -- that the oil coal palladium nickel you name it. Let's will be there and will be increasing because these countries are growing at a fast pace and the demand from the developed markets and I'm really going down. So. -- can't companies that have been. So. Hit I. No sentiment we got in commodities. So we still lie in the oil companies would instantly in the mining companies. And of course the the consumer. Play is important to us as well as it per capita income. Very gets some of the more difficult because. The company's income rather expensive. So we have to -- courses.

Alibaba IPO is 'overhyped': Mark Mobius

8:33am BST - 04:10

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