Investors are starting to "wake-up to the reality" that stocks are the only way for them to get real returns on their money, Mark Mobius, executive chairman of Templeton Emerging Markets Group, told CNBC on Friday.
"It takes time," he continued in a " Squawk Box " interview. "People don't move very fast. But once they move, then you're going to see tremendous bull markets. We're already seeing a very significant bull market [in the U.S.], but this is just the beginning as far as I'm concerned." (Read More Below the Video.)
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Stocks on Wall Street continue to hover around all-time highs with both the Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) and the S&P 500 Index (^GSPC) up about double-digits this year.
"[Investors] cannot continue to hold fixed income instruments that are paying 0.2, 0.5, even 1 [percent] because they are going backwards," Mobius added, considering stock dividend yields are "three percent in many markets around the world."
The reason that investors are still holding bonds and cash instead of stocks, he explained, is "inertia, you don't get around to it."
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Looking at his own portfolio-which he said he never has time for because he's managing other people's money-Mobius revealed, "I've got something like one third in cash. What am I doing?"
Like many investors, he's asking himself that question, and saying, "'Hey, it's time to get into equities.' This is the inertia you see and I think that is going to change."
In fact, he said, "I called my banker and said 'do more in equities' because it's crazy for me to be sitting on this cash."
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