"All the indicators" point to a looming 30% fall in the S&P 500 and the Dow Jones Industrial Average, Mark Mobius tells Financial News. Such a correction would pretty much wipe out the gains of the last two years. "When consumer confidence is at an all-time high, as it is in the US, that is not a good sign." All we need is a trigger for the crash, which could be anything from "a natural disaster" to "war with North Korea", says Mobius. Any fall would be amplified by the growing use of exchange-traded funds (ETFs), which now account for nearly half of all trading in US stocks. It is possible, admits Mobius, that if US president Donald Trump's policies "pay off then markets could move higher, but things are just looking so toppy'".
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