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US-China trade war a warm-up act for financial crisis: Mark Mobius

The MSCI Emerging Markets Index will likely fall another 10% from current levels by year-end, predicted Mobius

Bloomberg 

Mark Mobius
Mark Mobius

For Mark Mobius, there may be worse to come even after the US fired new shots in its trade war with China: a further 10 per cent drop in and a global

“There’s no question we’ll see a sooner or later because we must remember we’re coming off from a period of cheap money,” the veteran investor in developing nations said in an interview in Singapore. “There’s going to be a real squeeze for many of these companies that depended upon cheap money to keep on going.”

The MSCI Emerging Index will likely fall another 10 per cent from current levels by year-end, predicted Mobius. That would tip the gauge, which has fallen around 16 per cent from a peak in late January, into a bear market.

First Published: Wed, July 11 2018. 23:33 IST
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