Our emerging markets guru weighed in with Bloomberg on the current state of affairs. Notes from his interview:
- Expects more of the same from the American Fed, as he does not think they have given up stimulating the economy.
- Stock markets tend to stay up when there is more and more liquidity searching for a home.
- The lost confidence in the U.S. dollar and U.S. Treasuries has created a lot of temporary confusion.
- Bernanke has been very clear about what he wants to do, keep interest rates down, purchase U.S. Treasuries.
- Mobius does not think that the Fed’s stimulus policies (QE 1&2) have been failures as they have averted the worst of disasters.
- Thinks that Europe will get better now that they have a facility to deal with these troubled countries, but that lost confidence has hit both sides of the Atlantic.
- Debate in Europe is that basically Germany and others don’t want to simply bail out these countries without first seeing reform, while the countries in trouble just want the money now and will worry about the reform later.
- He thinks it is good that Germany is taking the hard line on the reforms happening first and Mobius thinks that is what will eventually transpire.
- Thinks that things will get better, particularly for those in equities as in order to beat the inflation coming as a result of the increase in money supply, investors are going to have to get into equities.
- Thinks the current volatility is incredible but that we are currently bouncing along the bottom for the stock market.
- Mobius continues to buy as markets go down, has been buying consumer and commodity stocks, thinks liquidity will push up commodity prices.
- Trend for stocks and commodities is up.
- Likes Brazil, China, Thailand, Russia at this stage.
Here is the full video: http://www.youtube.com/watch?v=rRZx5cUD2IA
- Expects more of the same from the American Fed, as he does not think they have given up stimulating the economy.
- Stock markets tend to stay up when there is more and more liquidity searching for a home.
- The lost confidence in the U.S. dollar and U.S. Treasuries has created a lot of temporary confusion.
- Bernanke has been very clear about what he wants to do, keep interest rates down, purchase U.S. Treasuries.
- Mobius does not think that the Fed’s stimulus policies (QE 1&2) have been failures as they have averted the worst of disasters.
- Thinks that Europe will get better now that they have a facility to deal with these troubled countries, but that lost confidence has hit both sides of the Atlantic.
- Debate in Europe is that basically Germany and others don’t want to simply bail out these countries without first seeing reform, while the countries in trouble just want the money now and will worry about the reform later.
- He thinks it is good that Germany is taking the hard line on the reforms happening first and Mobius thinks that is what will eventually transpire.
- Thinks that things will get better, particularly for those in equities as in order to beat the inflation coming as a result of the increase in money supply, investors are going to have to get into equities.
- Thinks the current volatility is incredible but that we are currently bouncing along the bottom for the stock market.
- Mobius continues to buy as markets go down, has been buying consumer and commodity stocks, thinks liquidity will push up commodity prices.
- Trend for stocks and commodities is up.
- Likes Brazil, China, Thailand, Russia at this stage.
Here is the full video: http://www.youtube.com/watch?v=rRZx5cUD2IA
