Mark Mobius: beware the communist threat

942-Mobius-634 — Mark Mobius, founder,Mobius Capital Partners

"It's frightening, they're talking about communism.It scares any investor."Mark Mobius, probably the best-known emerging markets investor in the world, is very used to dealing with political regimes that are corrupt, incompetent, or both. But in his latest interview with London's Evening Standard newspaper, he reveals that it's not the government in a developing nation that's unnerving him instead, it's the contenders for power in the US and the UK. Mobius is unimpressed by both Labour leader Jeremy Corbyn, and popular US Democrat Alexandria Ocasio-Cortez.

His concerns about Corbyn's talk of nationalising key industries may stem from bitter experience of investing in Venezuela.As soon as Hugo Chvez came to power in 1999, notes interviewer Mark Shapland, the 82-year-old investorsold his holdings in a local electricity utility to American energy firm AES. "As soon as he came in I started listening to what he was saying, I thought he's gonna take over everything."AES later had to sell out "at a big loss".Mobius is looking for investments in fast-growing Romania, but he's "lost faith" in Turkey under Recep Erdogan. Meanwhile, despite a penchant for contrarian investing, he's also avoiding Argentina, notes Colby Smith on FT Alphaville.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.