“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.
Subscribe to 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.”
-
My 8% Nationwide regular saver has matured - what are my options?The building society’s popular 8% account is maturing for many savers. Should you stick with Nationwide or move to a competitor?
-
How your investment portfolio could benefit from a UK homebuilding boomNews Asset managers have committed funds to address the UK’s housing shortage but is it worth building this into your investment portfolio?
-
Is Brevan Howard Macro a good investment?Holding Brevan Howard, a world-leading vehicle through an investment trust, offers diversification on the cheap
-
How can China boost consumption?China's new policies may give consumption a cyclical boost, even if long-term gains require more serious reforms
-
Pfizer shares rise as US investor takes $1 billion stakePfizer shares are on the up since US activist investor Starboard Value built up a stake in the drug maker. But strategic options appear limited
-
What is the outlook for oil prices?Oil prices will be set by the face-off between Saudi Arabia and US shale producers. Could tail risks change the possible outcome?
-
A fairer deal for investment trustsNew rules on how investment trusts report costs should ditch the idea that investors only need to look at one number
-
Top global fintech companies to invest inOne British fintech hogs the headlines, but there are two top performers in the US. We explain where you should put your money
-
Qualcomm could acquire rival Intel – but securing the deal won't be easyA tie-up between Qualcomm and its semiconductor rival Intel would be a coup. But multiple regulatory and commercial hurdles lie ahead.
-
How Finseta is cashing in on currenciesFinseta has established a foothold in the upper echelons of the market for international payments. Should you invest?
