Mark Mobius loves Indian stocks despite Covid crisis

Mark Mobius loves Indian stocks despite Covid crisis

Emerging markets investment guru Mark Mobius has said he loves Indian stocks, even though cases of Covid-19 in the country have jumped because “it will pass.”

India’s benchmark stock index Clever 50 rose about 8.1% this year at Tuesday’s close. Index climbed despite national reports a resurgence of Covid infections in the past month.

The South Asian country was among Mobius’ favorite markets even before the pandemic. The investor, a founding partner of Mobius Capital Partners, said it was “quite astonishing” that the Covid crisis in India did not affect the stock market much.

“But generally speaking, we know it’s going to pass, that people are going to get vaccinated and the numbers (Covid cases) are going to go down,” Mobius told CNBC. “Capital Connection” Tuesday.

“And given that, it’s probably a good buying opportunity,” he added.

Within the Indian stock market, Mobius said he liked software companies, healthcare stocks, as well as companies supplying equipment and materials to infrastructure projects.

Commodities and cryptos

In the commodities area, Mobius said he continues to love gold. He added that he would rather own physical gold than buying from mining companies, many of which are “not so profitable”.

But the seasoned investor said he was “not very excited” about the oil business. This is because oil prices have had an “incredible run” as they recover from the pandemic crash and might not rise much more, he said.

“I think we’re probably where we should be, $ 60 to $ 70 a barrel, so we’re not going to see an incredible boom in oil companies,” Mobius said, adding that some companies might still be interesting, though. that he did not specify. which.

Another investment Mobius dislikes is cryptocurrency, which he called a “high risk area”.

The price of Bitcoin rose from less than $ 30,000 at the end of 2020 to over $ 43,000 on Wednesday.

Mobius said it was difficult to predict the direction of cryptocurrency prices and wondered how easy it was to convert bitcoins and other cryptocurrencies into ‘real money’ that people can spend. . He also disagreed with suggestions that bitcoin could replace gold as a hedge against inflation.

“I can’t have a crypto ring when I can have a gold ring – that’s the real difference,” Mobius said.

“It’s a completely different situation and I don’t know why people say bitcoin can be like gold, it’s completely different. Gold is gold and it’s something physical, while bitcoin is not. ”

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