Taps Coogan – June 21st, 2022

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Mark Mobius, Mobius Capital Partners founder, legendary emerging markets pioneer, and John Templeton acolyte, recently spoke with CNBC to warn that he sees more downside for US markets as the Fed is forced to keep tightening. On the other hand, after at least a couple years of relative bearishness on China, he is now changing his tune.

 

Mark Mobius on US markets:

“I think things could get a lot worse. The main problem is the crypto currencies. This is a very unique situation where billions and billions of dollars have been put into cryptocurrencies and now it’s a tail wagging the dog and you can see Bitcoin goes down and the S&P 500 goes down… It has a big psychological impact… I have confidence that (the Fed) is going to follow their rule book and you know what that is. If inflation is 8.5% to 9% then interest rates are going to go up to 8.5% to 9%… They’ve made this mess with the printing of money the way they did and now it’s going to be very difficult for them to get out of it and we are going to be going through a lot of crises in the following months…”

On China and India:

“I think it’s time to start looking at China. I know that China has performed very badly recently, but the Chinese government is lowering interest rates, not raising interest rates like they’ve been doing in the US and they are trying to pump up the economy… we’ve reached a real bottom in the Chinese market… In addition the Indian market because they are very rapidly going through a transformation as a result of technology… 

There is more to the interview so enjoy it above. 

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