Cryptocurrency News | Investor Mark Mobius is worry about how the current bear market in the cryptocurrency market will affect other types of assets, like stocks, in the long run.
When Mobius, the founder of Mobius Capital Partners, spoke to CNBC-TV18 on February 15, he talked about why he still thinks Indian stocks are a good investment, how long he thinks the global correction in equities will last, and which companies he will invest in.
Following are the most important parts of the interview:
On cryptocurrencies
There is a problem, though. If the value of cryptocurrencies falls, other markets will fall as well.
Millions of people think they’re rich because they made money in crypto. When crypto prices go down, they feel less rich and may leave other markets. That’s another reason why there has been a lot of volatility in the markets.
On market Conditions
We are in rough water now. Guesswork: We might see another 10% drop in the market, but this is all just guesswork.
I think we’re still in a long-term bull market. So when the big bear market comes, you can buy things.
This is the most important thing right now: to be invest in companies that have good chances of making a lot of money. We are now going up a wall of fear.
Companies that are doing well even in this kind of environment should be the main thing we focus on, and that’s what we should be doing, too.
On US Fed rate hikes
Cryptocurrency News | What is going on with Russia and Ukraine? I think it’s just a small part of the whole interest rate thing.
In this case, the Fed is a little late with the interest rate rise. As long as inflation in the United States is at 7%, the Fed may have to raise interest rates even higher than that in order to give people real interest.
My guess is that Fed rate hikes haven’t been fully price in yet, and there may be more volatility and downside ahead.
On India
As long as I live in India, I will always be a bull for the country We are in a place where growth is so good that we have to be in India.
ETFs are use by more than half of the foreign investors in India. This means they are following the index. So when the emerging market index doesn’t do as well as the developed market index, they get angry.
We need to look for companies that can withstand this storm, like those with low debt, good EPS growth, and good return on capital. Strong pricing power and a high return on capital are two things we like in business.
On new-age tech companies
Cryptocurrency News | When interest rates rise, many of the so-called “tech” companies will be hurt because they aren’t making money, and these companies will be even worse when interest rates rise.
India, as a whole, has done well in the software field, but there are still companies that will do well in this field.
People in India are going to make a lot of computer hardware, whether it is in semiconductors, PCs, or phones.
On LIC IPO
If more shares in state-own businesses are sold by the government, it’s a good thing for everyone. As more stocks are listed, India’s market value rises, which makes it more important to the world as its market value rises.
If India were as big as China now, the EM index wouldn’t have gone down. This is why I wish India was as big as China. As time goes on, I hope that more of these government businesses will be added to the list.
Most big foreign investors will have to buy LIC because it will be on a lot of important indices in the future, so they will have to.
If the market has been down recently, then the IPO may not get as much attention as it would have, but there will still be a lot of people there.
SOURCE: IPOINFO