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.”
-
Metals and AI power emerging marketsThis year’s big emerging market winners have tended to offer exposure to one of 2025’s two winning trends – AI-focused tech and the global metals rally
-
8 of the best houses for sale with beautiful fireplacesThe best houses for sale with beautiful fireplaces – from a 15th-century cottage in Kent to a 17th-century palazzo in Oxfordshire
-
Metals and AI power emerging markets
This year’s big emerging market winners have tended to offer exposure to one of 2025’s two winning trends – AI-focused tech and the global metals rally
-
8 of the best houses for sale with beautiful fireplaces
The best houses for sale with beautiful fireplaces – from a 15th-century cottage in Kent to a 17th-century palazzo in Oxfordshire
-
King Copper’s reign will continue – here's whyFor all the talk of copper shortage, the metal is actually in surplus globally this year and should be next year, too
-
Luana Lopes Lara: The ballerina who made a billion from prediction marketsLuana Lopes Lara trained at the Bolshoi, but hung up her ballet shoes when she had the idea of setting up a business in the prediction markets. That paid off
-
British blue chips offer investors reliable income and growthOpinion Ben Russon, portfolio manager and co-head UK equities, ClearBridge Investments, highlights three British blue chips where he'd put his money
-
Coreweave is on borrowed timeAI infrastructure firm Coreweave is heading for trouble and is absurdly pricey, says Matthew Partridge
-
Renewable energy funds are stuck between a ROC and a hard placeRenewable energy funds were hit hard by the government’s subsidy changes, but they have only themselves to blame for their failure to build trust with investors
-
Profit from document shredding with RestoreRestore operates in a niche, but essential market. The business has exciting potential over the coming years, says Rupert Hargreaves
