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Mark Mobius: Expect 'V-Shaped Recovery' in US by End of 2020

By    |   Friday, 31 July 2020 01:09 PM

Investment guru Mark Mobius predicts a sharp economic rebound by the end of 2020 despite the nation reeling from the COVID-19 pandemic,

“I think we’re going to have a V-shaped recovery,” Mobius, chief executive officer of Mobius Capital Partners, said in a recent interview with BNN Bloomberg’s Amanda Lang.

A V-shaped recovery is commonly characterized by a quick and sustained recovery in measures of economic performance after a sharp economic decline. 

“I think by the end of this year, you’re going to see a big rebound. And of course the stock market is telling us that. The market is telling us hey, we’re going to have a big  recovery,” said Mobius, who set up investment firm Mobius Capital Partners in 2018 after three decades at Franklin Templeton Investments. 

Mobius also said will be investing in value stocks and keeping a sharp eye on underperforming companies. “We’re always looking at value at the end of the day. The big boys tend to come up first … if you see any laggards in the large caps, those that have not benefitted from the big upturn and their numbers look good, then definitely we have to pay attention to them,” he said.

Mobius also said savvy investors shouldn't ignore smaller companies. “I would say focus on the smaller, the mid- and small-cap, I think that’s better,” he said.

White House economic adviser Larry Kudlow also maintains the V-shaped economic recovery still intact despite coronavirus resurgence.

"There's a huge housing boom. There's a retailing boom. That's an automobile boom. Trucking is still very strong," Kudlow said earlier this week on Fox Business Network.

"We've had a jobs boom, so far. And contrary to some poor reading, unemployment claims and continuing claims are falling rapidly, and the July jobs number on unemployment and job increases I think is going to look pretty good," said Kudlow, who worked as Reagan’s budget deputy between 1981 and 1985.

"We're looking carefully at any moderation in the story. I get that, and there will be some in July. But I think the 'V-shaped' recovery and the 20 percent second-half growth is still very much intact," said Kudlow, who served as the Trump campaign's senior economic adviser.

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As the U.S. economy reels from the COVID-19 pandemic, famed investor Mark Mobius said he expects it to sharply rebound by the end of 2020.
mark mobius, v shape, recovery, pandemic, virus
Friday, 31 July 2020 01:09 PM
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