Bloomberg reports that according to veteran investor Mark Mobius, the world’s largest money managers may be underestimating the durability of inflation after a record wave of money printing to combat the Covid-19 pandemic.

This will pose a particular problem in the U.S., where a rising inflation rate will weigh on the global reserve currency, said Mobius. At the same time, the quickening price growth is likely to support a rally in raw materials, even as the Bloomberg Commodity Index already hovers near its highest since July 2015, he said.

Such a backdrop favors emerging markets, which will grow faster than their developed-nation peers in the years ahead, Mobius said. Chinese and Indian equities, recently beaten down by a rout in technology shares as well as the latest Covid-19 crisis, look particularly attractive, he said. Yet he voiced caution about fully rotating into value stocks.