Markets Might Be In For A 30-40 Percent Correction Warns Mark Mobius
Recent reports reveal that the stock markets might be in for a market correction. According to investment guru Mark Mobius, there might be heavy corrections in the market. Mobius cited that the long term US bull market that has existed since 2009, is the reason for the market correction.
According to the investment guru, the long run Bull Run for the stocks is the reason for the correction. There might also be a lot of corrections in the market as well. Things might change for the better or for the worse, once this correction does happen. However, according to Mobius, this 30-40 percent adjustment is not something that might be called unreasonable. However, he also did mention that this is something that he is not predicting but something that might be in for the markets. He also said that one should prepare themselves for everything and this is something that requires a lot of preparation.
One of the reasons for this correction, he said, is going to be the increase in interest rates. The Fed, he said, is moving in that direction and that is going to have a serious impact on the markets. Moreover, he also said that nobody could resist the movements of the fed. He said that if the Fed is moving in some direction, then everybody has to move in that direction as well.
Political changes are also going to affect the markets, said Mobius. He said that any event could trigger the market and have an affect on it. He also said that right now, we are seeing the bull market and the fact that it needs a correction.
Mobius further said that over the long term, the emerging markets would do quite well. In fact, his exact words were that the market is going to do ‘very, very well’. However, the short term changes are going to have quite an impact on the markets and the market correction is going to be no different either.
From what Mobius has said, we can safely say that the markets have to brace themselves for the long and short run changes both.