Taps Coogan – January 3rd, 2022

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Mark Mobius, Mobius Capital Partners founder, legendary emerging markets pioneer, and John Templeton acolyte recently spoke with BNN Bloomberg about his outlook for 2023, doubling down on his longstanding bullishness on India relative to China.

 

Some excepts from Mark Mobius:

“There is no question that China needs more capital. They need to have foreigners come in and provide them with more capital so they are going to ease up on Covid… The problem that we have, and I think a lot of other institutional investors, is that China’s attitude towards Taiwan is not very good. They have a belligerent attitude towards Taiwan. They are thinking of attacking Taiwan forcefully in order to bring Taiwan into China and that scares the heck out of a lot of people… That’s the reason why we are more bullish on India…”

“The Fed is not going to let up. They want to see inflation at 2% and we’re a long way from that. That means that interest rates are not going to go down. In fact they may even go up… However, a lot of the emerging market currencies devalued too quickly and too far…”

“India gradually is going to replace China in terms of manufacturing. Of course India is already a big exporter of software and going forward, I believe that the hardware is going to move to India going forward. India is number one. Then you have to look at countries like Indonesia, like Thailand, …perhaps Brazil depending on what happens with Lula…”

For anyone keeping track, Indian markets outperformed US markets in 2022 and remain among the top performing emerging markets since Covid. With China’s population now in structural decline, India is expected to become the world’s most populous country this year and overtake Germany’s economy within a few years. 

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