Mark Mobius: US stocks could fall by 30%

All the indicators point to a looming 30% fall in the S&P 500 and the Dow Jones Industrial Average, says investor Mark Mobius, founder of Mobius Capital Partners.

893_MW_P16_Guru

Mark Mobius,founder of Mobius Capital Partners and former executive chairman of Templeton Emerging Markets Group
(Image credit: © 2018 Bloomberg Finance LP)

"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'".

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Alice grew up in Stockholm and studied at the University of the Arts London, where she gained a first-class BA in Journalism. She has written for several publications in Stockholm and London, and joined MoneyWeek in 2017.