Taps Coogan – October 31st, 2020

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Back in May, when markets were still near their lows and when there was near unanimous agreement among pundits and economist that there would not be a ‘V’ recovery in markets or the economy, Mark Mobius was basically the only high profile investor we are aware of that went on the record as solidly bullish.

Fast forward to today and Mr. Mobius is now sounding the alarm for US equities despite the widespread institutional view that both outcomes on November 3rd are very bullish for equities despite one of them involving the largest percentage increase in personal, capital gains, and corporate taxes in US history for wealthy investors (i.e. 90% of invested money), and the renewed prospect for lockdowns:

Mr. Mobius notes that:

“If you are a technician and you look at the S&P 500, it looks like a double top is forming which is quite dangerous… Emerging markets are beginning to slightly outperform the US S&P 500 which is quite interesting and that means that there are some people that are diversifying away from the US market.”

“A Biden victory will probably be bad for the US market and therefore probably bad for markets around the world, but it will be short term because a lot will depend on what measures Biden actually takes…”

There is more to the discussion, so enjoy it above.

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