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Mark Mobius Predicts 30 Percent Stock-Market Plunge

Image: Mark Mobius Predicts 30 Percent Stock-Market Plunge

Monday, 16 April 2018 05:41 PM

Investment guru Mark Mobius predicts that the volatile stock market is on the brink of a 30 percent tumble.

“I can see a 30% drop,” Mobius recently told Financial News London.

“The market looks to me to be waiting for a trigger that will cause it to tumble. You can’t predict what that event might be — perhaps a natural disaster or war with North Korea,” said Mobius, who left Franklin Templeton earlier this year after more than 30 years.

Mobius fears that exchange traded funds, which account for nearly one-half of all trading in U.S. stocks, would trigger further drops once markets fall.

“ETFs represent so much of the market that they would make matters worse once markets start to tumble,” said Mobius. “You have computers and algorithms working 24/7 and that would basically create a snowball effect. There is no safety valve to prevent further falls, and that fall would escalate very quickly.”

“If Trump’s policies pay off then markets could move higher but things are just looking so ‘toppy’,” he said. “And if the US market falls, then everybody is in trouble.”

Mobius has made prescient calls on some major market movements, Bloomberg explained.

He correctly predicted the start of a bull market that began in 2009, snapped up bargains during the Asian financial crisis after Thailand floated its currency in 1997, and bought Russian stocks as panic selling took hold in Russia in 1998. He was also one of the first institutional investors to identify Africa as a promising frontier market, setting up the Templeton Africa Fund in 2012.

Mobius published more than 10 books on investing and economics, including “The Investor’s Guide to Emerging Markets” (1994). And a Japanese publisher has glorified his globe-trotting exploits with a manga-style comic book, chronicling the "Bald Eagle."

(Newsmax wire services contributed to this report).

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Investment guru Mark Mobius predicts that the volatile stock market is on the brink of a 30 percent tumble.
mark mobius, stock, market, invest, plunge, drop
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2018-41-16
Monday, 16 April 2018 05:41 PM
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