Mobius: U.S. Market at Risk of 20 Percent Drop

Although the stock market is on a rebound, investors should remain cautious, Mark Mobius, executive chairman at Templeton Asset Management, told CNBC.

The market will likely correct itself soon with a steep adjustment, noting that a 20 percent correction would be par for the course, he said.

“In a secular bull market, where we are now, you will see corrections can be as much as 15-20 percent, but we shouldn't be concerned that this represents a bear market," he said.

"A 20 percent correction is not unusual, we've seen it in China already last year … so you will see that on an individual market basis,” Mobius said. (more)