Stock markets have not hit ‘absolute bottom’ yet – investment guru Mark Mobius
The economic damage from a protracted coronavirus pandemic shutdown will be “incredible,” according to veteran emerging-markets investor Mark Mobius, who says there’s an urgent need to restart the global economy.
“I think we have to open up again in some way, because otherwise the collateral damage is going to be incredible,” he warned, in an interview with CNBC. “You think about the people who live day to day ... you got to get the economy going again.”
Mobius suggested that markets have probably not bottomed-out yet, urging investors to keep more cash on hand in case another crash occurs. “I don’t think we’re at the absolute bottom yet because the implications of this shutdown are incredible,” he said, adding that “things are pretty bad” from the perspective of corporate earnings.
Also on rt.com ‘We’ve turned the dollar into toilet paper’, chief investment officer tells Keiser Report“Although there are some opportunities to buy, I would say it’s probably a good idea to keep some powder dry for another downturn. We might see a double bottom,” said the so-called Godfather of Emerging Markets.
Markets have been volatile in the past month, thoroughly following the spikes in the number of Covid-19 cases and fatalities in the United States and globally. The S&P 500 was down almost 19 percent from its all-time high on February 19. According to Refinitiv, analysts expect S&P 500 earnings growth to decline 10.2 percent in the first quarter year-over-year.
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