Veteran investor in emerging markets, Mark Mobius, is opting to maintain a significant portion of his funds in cash due to ongoing trade-related uncertainties expected to last up to six months.
According to Mobius during a discussion on Bloomberg Television, the strategy currently places a whopping 95% of his funds in cash, underscoring his belief that having cash available is crucial at this time.
Mobius has been investing in developing markets for around 30 years and notes that while nations like India might thrive amidst the current conditions, patience is necessary until uncertainty stabilizes.
Unlike many Wall Street managers who are moving cautiously with their equity exposures, Mobius’s preference for high cash positions highlights the increased risks caused by tariff disputes.
A survey by Bank of America Corp. from earlier this month indicates that investor sentiment about the economic outlook is at its most pessimistic in three decades. Mobius anticipates that market opportunities will become clearer as trade discussions progress over the coming four to six months. He intends to begin deploying funds within three to four months based on arising opportunities, especially if markets decline further, according to his strategic plan as outlined by Mobius Capital Partners.
