Mark Mobius: Lockdowns are a losing game
An easing up of lockdown efforts is likely to mean ”economic recovery at the end of this year and the beginning of next year”, says Mark Mobius, co-founder of Mobius Capital Partners.
“There’s no question that the fear of another lockdown affects markets around the world,” Mark Mobius, the veteran emerging markets manager, tells India’s CNBC-TV18. However, this is unlikely to happen “because populations around the world are not going to tolerate further lockdowns”.
We can already see the “tensions building up” as countries such as the UK announce new restrictions. “Governments… are going to begin to realise that this is a losing game and they cannot continue.” So an easing up of lockdown efforts is likely to mean ”economic recovery at the end of this year and the beginning of next year”.
Investors should also not be worried by the recent slide in the dollar. “The dollar weakness … should be good for emerging markets because people will think about moving their money out of the US into emerging market stocks”. Mobius remains upbeat on India, which is his largest country holding – at around a fifth of his portfolios, partly as a result of having performed well over the past year – followed by Brazil on 16%: the latter could be back to all-time highs by year end, he told Bloomberg in July.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

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
“Look for companies that have little debt and are able to grow earnings,” he adds – but make sure they are embracing change. “One of the principles that we live by is that any company in which we invest must have a tech emphasis… they’ve got to take advantage of technology and the internet… otherwise we are not interested, even if they are in a traditional industry.”
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, 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.
-
Is it time to ride the recovery in emerging markets?
Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
Could the Enterprise Investment Scheme cut your tax bill?
The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
'Ride the recovery in emerging markets': Gustavo Medeiros of Ashmore Group tells MoneyWeek
Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
What is the Enterprise Investment Scheme and should you have one?
The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
The alcohol industry is suffering as consumers sober up – is it still worth investing in the sector?
Changing consumer tastes are rocking the alcohol industry, but the best players are adapting their strategies. Buy them while their shares are still cheap
-
A strange calm in credit
Corporate bond markets remain remarkably relaxed, with yields that offer little compensation for risks
-
The City's big bet on green finance fails to pay out
Opinion Insurers and banks are backing away from “green finance”, and there is not much sign of the green boom we were promised. That’s a problem for the City
-
Why is English football thriving – and can it last?
What has gone so right for English football? The national team has found its feet; the Premier League is swimming in money and profits are soaring
-
Six top investment trusts for smaller stocks
Liquidity constraints mean investment trusts are best placed to seize the juiciest opportunities
-
Could colour diamonds add a sparkle to your portfolio?
Diamonds of various shades never go out of fashion, says Chris Carter