Emerging Markets Godfather Mobius: Bitcoin is a Leading Indicator for Stock Market Bottoms

According to “Bloomberg”, as U.S. stocks and Bitcoin continue to plummet recently, Mark Mobius, founder of Mobius Capital Partners, known as the godfather of emerging markets, said in an interview on the 22nd that if you are a Stock trader, now need to turn their attention to cryptocurrencies, as Bitcoin is a leading indicator of a stock market bottom.

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“Cryptocurrencies are a measure of investor sentiment, and when Bitcoin fell, the Dow Jones fell the next day, and that’s a pattern that can be drawn from cryptocurrencies, indicating that Bitcoin is a leading indicator,” Mobiles said. If you’re a stock trader, now or should turn your attention to cryptocurrencies.

When it comes to how to judge when the stock market will bottom, Mobius believes that only when institutional and retail investors really admit defeat and stop investing more money in the stock market because of losses, investor sentiment will really drop to the lowest level. point, and this is when investors start to be able to get in on dips.

Concerns about the risk of a global recession have caused bitcoin prices to plunge about 70% from their all-time high of $69,000 in November last year and continue to hover around $20,000. Concerns over interest rate hikes and supply chain disruptions in China and Europe have also officially plunged the MSCI world index into a bear market.

Mobiles further stated that if Bitcoin investors are still talking about buying the dip, it means that there is still a sense of hope in the market, which also means that the bottom of the bear market has not been reached.

As a veteran emerging market investor, Mobiles also offered his own investment advice, saying he would prefer to hold some cash for now and may invest in stocks in India’s building materials, software, and medical testing industries.

Favor India, China Taiwan

In response to the reasons for favoring India, Mobiles explained in an exclusive interview with “CNBC” on the 21st that India is becoming a very exciting country, mainly due to the development of the technology industry and government policies, so his attention to India is increasing day by day.

Investors can invest in Indian equities, especially tech stocks, Mobiles suggested, noting that India has many world-class companies in the software business, such as Tata, which has operations around the world. Other Indian companies that are already very, very large in the software market are also entering the hardware space, and tech companies like Apple are also making their way into India.

It is worth noting that Mobiles also mentioned that he also favors Taiwan, believing that in addition to being the home base of chip manufacturers including chip foundry giant TSMC, Taiwan also has all the best parts of Chinese culture, and he praised Taiwan for its openness. society, with astonishing creativity.

Mobiles said: A lot of software chips are made in Taiwan, which is also the focus of our attention.

Before the cryptocurrency bottoms out, indirectly entering the market by investing in mining machines can effectively reduce investment risks.


Post time: Aug-23-2022