Taps Coogan – October 5th, 2022

Enjoy The Sounding Line? Click here to subscribe for free.

Mark Mobius, Mobius Capital Partners founder, legendary emerging markets pioneer, and John Templeton acolyte, recently spoke with a CNBC affiliate in India to discuss his outlook.

Mark Mobius on US markets:

“Regarding the US, I’ve been saying for quite some time now that the Fed is going to continue raising rates and that, of course, is putting a damper on the market. People need to remember that the playbook for central banks around the world, particularly the Fed, is they want to raise interest rates above the inflation rate… That means that interest rates need to go to 9% if CPI stays at this level. So I think more is in store for the markets and, as you know, for the S&P 500 we are right at the support level and if we break below this level, then we’re going to see more blood on the streets.”

On India: 

“The interesting thing is India is really bucking this trend… It speaks very well for the policies that the government has pursued… I think India is beginning to really take more and more manufacturing share from China and I think that the government policy… of speeding up the bureaucracy is going to be very very good for India… Apple has moved its latest iPhone manufacturing to India as well…”

On China:

“I don’t think the policy mandates in China will change very quickly, particularly if Xi is re-elected… However, the Chinese are well aware that the Chinese need to have more dollars flowing into the economy… so they will do their best to attract foreign investor within reason. The problem for them is the reluctance of many investors to go back to China. We’ve been in client meetings were we say ‘We want to talk about emerging markets’ and the clients say immediately ‘We don’t want to talk about China. Talk about anything else expect China.’ So, a lot of people have been burned in China which means that India is in a pretty good position.”

There is more to the interview so enjoy it above. 

Would you like to be notified when we publish a new article on The Sounding Line? Click here to subscribe for free.