According to Mark Mobius, the stock market could be making a correction. He is not predicting a thirty to forty percent adjustment which he says is not unreasonable he is just stating that we need to be ready for the adjustment. The reason for the correction he states is the long United States bull market since 2009. Mark Mobus is the funding partner at Mobius Capital Partners.
The Federal Reserve is continuing interest rate increases and Mobius believes that this is the catalyst. Everyone has to move in the same direction as what the Fed is moving so there could be a correction in the stock market. He also states that the market correction could also be a result of political changes. Political changes do have an impact on the stock market.
Yet the main reason Mobius believes is the length of the bull run. It is not the long term that really effects the stock market it is the short term corrections that are dramatic. Even though he points out the impact geopolitical flare-ups could have on the market he states that any type of event could possibly be a trigger.
The long bull run and the United States dollar strengthening that will make the stock market correction be huge. While Mobius is looking for the huge correction chief investment strategist at the Center for Financial Research and Analysis Sam Stovall believes that it will be a much more modest correction. Stovall predicts tath the S&P 500 will fall only three percent before it hits bottom. He does not believe that the stock market is going to be falling into a new bear market.
The last time the market hit bottom was in March 2009
Mobius was the executive chairman of Templeton Emerging Markets Group. He started there in 1987. He was successful in directing the research team in eighteen global markets. In 2015 he decided to step down. His retirement as announced. He came out of retirement in 2018.
Mobius just launched his new asset management firm Mobius Capital Partners. Earlier he had announced that he was retiring but with his new company, he is once again playing the stock market. He says that his new firm will focus on improvement in emerging and frontier market companies. as well as companies in China and Latin America.
He also talked about the relationship with Chinese firms improving. He said that the reason why was in how Chinese companies are more receptive.