Mark Mobius, Founder of Mobius Capital, known as the “investment guru” in international markets, stated that emerging market companies performed well despite the deterioration in the global outlook, and said they would continue to look to Turkish companies for investment.
Speaking about the outlook for emerging economies, 87-year-old Mobius stated that global markets have performed below potential for the last few years, while emerging markets have recently achieved a very good growth due to the growth in China.
“Emerging markets are getting better. This is primarily due to the recovery in China. As it is known, China represents 30% of the emerging markets index. So when China is doing well, the index is also doing well,” Mobius said.
Noting that the emerging market companies performed well despite the deterioration in the global outlook, Mobius said, “There are many companies and countries that perform very well in emerging markets. India is a good example of this. Companies in Turkiye, South Africa, Brazil, Vietnam, Taiwan and similar countries perform well despite the macroeconomic situation.”
Mobius stated that Russia contributed to the decrease in global energy prices by selling oil in local currencies due to the Ukraine war, and that energy importing and developing economies such as Turkiye and India will benefit from this situation, “I think Turkiye will show a good growth (in the coming period).”
Mobius, referring to the recent decisions of central banks, said, “The US Federal Reserve (Fed) and other central banks around the world have put the world in a very difficult situation by printing too much money. This of course has a direct effect on inflation. Inflation means too much money in circulation.”
“I predict that Turkish construction companies will perform well”
Mark Mobius, expressing his great sadness due to the earthquakes in Turkiye in February, explained that the earthquake zone is in question to be rebuilt and large investments will be made for better housing.
Stating that some companies can perform well in sometimes tense and difficult times, Mobius noted that he predicts that Turkish construction companies will perform well in the process of renovating cities with earthquake-resistant structures.
Expressing that the inflation and exchange rate level in Turkiye benefit Turkish exporting companies, Mobius said, “For example, we are doing business with a company that exports software in Turkiye. While the company’s exports are in foreign currency, its costs are in Turkish lira and therefore it performs well.”
Expressing that he closely follows the developments in emerging markets, Mobius said, “We will definitely continue to look to Turkish companies (to invest).”
“Confidence in governments in general is declining”
Mobius, Founder of Mobius Capital, said that in many countries of the world such as France and Israel, there is a tendency for people to make their voices heard and to show themselves, especially in the economic framework, when there is uncertainty regarding mass movements and street demonstrations.
Claiming that the trust in governments has decreased with the effect of economic and political developments all over the world, Mobius said, “So people show this (insecurity) first of all by buying more cryptocurrencies, more gold.”
Mobius warned that consumers may feel uneasy when such uncertainties are high that “even their deposits in banks are not safe”.
Using the phrase “confidence in governments in general is declining”, Mobius said that the protests in France are a typical example of this.
Source: Trthaber / Prepared by Irem Yildiz