Are There Opportunities In Emerging Markets, Metaverse Or Crypto Right Now? What Legendary Investor Mark Mobius Thinks

Emerging markets expert and founder of Mobius Capital Partners, Mark Mobius, is not piqued by the metaverse but thinks the companies that are creating it could be an interesting opportunity. He also had a lot to say on other topics such as cryptocurrency and recession.

What Happened: Mobius in an interview with omny.fm said the service offered by metaverse-linked companies could be quite desirable.

Prominent companies linked to that sector include Facebook parent Meta Platforms Inc META, chipmaker NVIDIA Corp. NVDA, Unity Software U and Roblox Corp. RBLX. 

The veteran investor said he would be keeping an eye on Ukraine, what happens in the general U.S. markets and interest rates, and most importantly, the growth prospects of companies in emerging markets that have not been hit by the downturn.

On Crypto: Mobius said cryptocurrencies lead the market because there are millions of people who have invested in various kinds. “I always tell people I don't like to talk about cryptocurrencies in public. It is a matter of faith.”

The two biggest cryptocurrencies by market cap currently are Bitcoin BTC/USD and Ethereum ETH/USD.

Also Read: Australian Consumers Lost A Whopping $14M To Bond Impostor Scams In First Half Of 2022

On Recession: Dubbed the "Indiana Jones of emerging markets investing", Mobius said consumer confidence is not very good but consumer spending is high in the United States.

“In this kind of environment, as soon as unemployment rises, which hasn’t yet, then you will have a recession."

EM countries heavily dependent on exports will have problems except for companies that are in the tech area, he explained.

India Prospects: Mobius said the beauty of the Indian situation is that you have about a billion people and they have an internal market that is very strong and is getting stronger every day.

In India, Mobius is looking at software and certain kinds of hardware, while investing heavily in companies that support the production of chips. “We are looking at the healthcare testing area. We are also looking at a construction area,” he said.

On Sri Lanka: Mobius said Sri Lanka will need more political reforms where reform-minded leaders begin to change the way business is done. “This would take time but I believe that within a year or two, Sri Lanka will be back on its feet,” he said.

Mobius’ Tips For EM Investing: 

1. Buy equities in emerging markets
2. Buy companies that have no debt or very little debt. In this environment, debt is going to be a big burden
3. Buy companies that have a very good management

Photo courtesy: Mobius Capital Partners