The stock exchange guru Mark Mobius is now 86 years old, but his enthusiasm for the international stock markets seems to be undiminished. Mobius also seems to remain decisive: if he had exactly one million, he would know exactly how he would invest it.
• One million free: Mobius would invest in Indian equities
• India continues to offer brilliant growth
• Mobius remains bullish on Chinese stocks despite the current economic downturn
Mark Mobius is known in stock market circles as the “Emerging Markets Guru” – he owes his excellent reputation to decades of experience as a fund manager, mainly dealing with the Asian markets. Hong Kong, Taiwan, Indonesia, India, Thailand, Korea or the Philippines – there is hardly a country in East and South Asia where Mobius has not worked. Most of the time, the investor, whose characteristic bald head has become a trademark, worked for the renowned US investment company Franklin Templeton Investments. It’s little wonder, then, that Wall Street considers Mobius to be a consummate expert on investing in emerging markets in general and Asia in particular. But does he continue to build on the Asian economies, although the economy in China in particular has recently experienced a severe downturn?
Mobius: “For me, India is the real future”
Mobius is not deviating from his fundamental optimism about the economic future of the Asian countries. Mobius recently told readers in the Bloomberg series of articles “Where to invest 1 million dollars” what he would do with said seven-figure sum on the international capital markets. His answer to the question was crystal clear: Mobius would invest the million dollars in Indian stocks. “For me, India is the real future. Of course, the market has done very well and we’ve been at the top recently, but we still find great bargains from wonderful companies,” said Mobius, full of praise for India.
Measured in terms of gross domestic product, the growth rate in India has been over 7 percent in recent years and is therefore one of the highest in the world, Mobius emphasizes. “As a rule of thumb, if the country has a growth rate of 7 percent, a reasonably good company should be able to double that. We therefore expect earnings per share growth of 14 percent for good Indian companies,” cash quoted as saying .ch the old master.
Mobius is heavily invested in this Indian company
What Mobius advises investors, he has been doing himself for several years. He is invested in various Indian companies. His company Mobius Capital Partners has acquired a particularly large stake in the Indian company APL Apollo Tubes, which manufactures pipes for the construction sector. “Construction is booming in India. You travel around and see how roads, bridges and tunnels are being built,” says Mobius, explaining his decision. In fact, APL stock has performed extremely well over the past few years. However, Mobius’ economic optimism for India seems to be unbroken, so he wants to increase his equity exposure by 25 to 50 percent in the near future, despite the higher valuation level.
Despite weak stock market development: Mobius remains bullish on China
In addition to India, Mobius still considers China to be very promising, even if disillusionment has now set in on the Shanghai stock exchange after the strong run of 2021 and official restrictions mean that it is currently unable to access the capital invested in China. The economic downturn in China due to the faltering post-COVID 19 recovery is dampening Chinese investors’ mood to buy, and many international fund managers currently consider investments in Japan or India to be more promising.
The result: While the Nikkei 225 and the Indian leading index BSE SENSEX recently rushed from record high to record high, the Chinese stock market – measured by the Shanghai Composite stock market barometer – is still well below the level it marked at the beginning of 2021. But Mobius sees good prospects in view of the lagging stock development in China, in particular the US star investor is focusing on chip stocks from China and Taiwan, above all Taiwan Semiconductors (TSMC). Mobius, on the other hand, is less optimistic about the crypto sector – here he expects the original cryptocurrency Bitcoin to fall again to a level of only 10,000 US dollars in the current year.
Editorial office finanzen.net
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