Emerging markets guru Mark Mobius said that governments around the world will have a ‘tough time’ imposing a harsh lockdown again, as people are fed up of stay-home orders.
“We could see real political dissent if fresh lockdowns are imposed,” Mobius told CNBC-TV18.
This viewpoint predicates Mobius’ view on the markets, which he says is “definitely” in a bull zone, financial speak for upward trending.
“We are definitely in a new bull market,” Mobius said, positing a very different opinion from most market gurus around the world who say stocks have run up too fast in the hopes of recovery following a correction in March.
“Bull markets always have to climb a wall of worry. India will see a big earnings hit this year. But markets are predicting a v-shaped recovery. It will show in economic numbers next year only,” he said.
Mobius, who as a leading fund manager with Franklin Templeton, was among the first large investors to seriously start investing in emerging markets, said India and China were at the top of his pecking order.
He added that emerging economies were likely to do better than developed economies.
Among sectors in India, Mobius said he likes healthcare, infrastructure, and select companies in telecom and technology.
“In the consumer space, we like companies that are using the Internet for sales,” said Mobius.