Billionaire investor Mark Mobius is taking a cautious approach in light of the ongoing global trade tensions, with the bulk of his funds currently held in cash. The chairman of Mobius Emerging Opportunities Fund is holding about 95 per cent of his capital in cash, anticipating that market uncertainties related to the trade war may last for the next six months.
Mobius, who co-founded Mobius Capital Partners and has over three decades of experience in emerging markets, shared in an interview with Bloomberg Television that he plans to wait for clearer market signals before making investments. “At this stage, cash is king,” he said, adding that he intends to hold onto this cash position for 3-4 months.
While many fund managers are becoming more cautious in their equity allocations, Mobius’s large cash holdings underscore the risks associated with escalating trade tensions. A recent Bank of America survey highlighted that investor sentiment is the most pessimistic in 30 years.
“We’ve got to keep the cash and be ready to move when the time is right,” Mobius said. He added that he is watching for potential market dips to enter.
According to the report, Mobius also has a small allocation in S&P 500 funds to track the broader market, and has predicted a potential rebound by the end of the year as investor sentiment improves in the US. He also expects US policymakers, including US President Donald Trump to take actions that prevent major market declines.
Optimistic About Indian Market
Mobius said he is nevertheless optimistic about certain markets, especially India.
Previously, he had told Outlook Money in an interview about the potential of the Indian markets, Read Here.
He said India might gain as global supply chains shift away from China, with the US also keen to deepen trade ties with India. He said he is closely watching sectors like software services and electronics manufacturing in India. Mobius added that India could serve as a key alternative to China in global trade.
On China, Mobius has expressed a wait-and-watch attitude, suggesting that he would turn bullish on the country if it changes its trade policies and boosts domestic consumption.
