After Jim Rogers recently warned of ‘biggest crash in our lifetimes,’ veteran investor and emerging markets champion Mark Mobius warns of a severe stock market correction.
After Jim Rogers recently warned of ‘biggest crash in our lifetimes,’ veteran investor and emerging markets champion Mark Mobius warns of a severe stock market correction. “I can see a 30% drop. The market looks to me to be waiting for a trigger to tumble,” Mark Mobius told in a recent interview with the London-based Financial News.
Elaborating on the reason for the imminent crash, Mobius said, “The consumer confidence is at all-time high in the US, and it’s not a good sign. You can’t predict what that event might be—perhaps a natural disaster or war with North Korea,” he said. Apart from peaking consumer confidence, Mobius also warns of a snowball effect caused by algorithmic trading, and says that extensive use of computers pose a huge risk to the stock market.
“You have computers and algorithms working 24/7 and that would basically create a snowball effect. There is no safety valve to prevent further falls, and that fall would escalate very quickly. ETFs represent so much of the market that they would make matters worse once markets start to tumble,” he warned. According to the expert, “If the US market falls, then everybody is in trouble.”
Following the stock market correction in February-March, Jim Rogers, the renowned co-founder of Quantum Fund, said that the next bear market ‘will be worst in our lifetime.’ “When we have a bear market again, and we are going to have a bear market again, it will be the worst in our lifetime,” Jim Rogers, the chairman of Rogers Holdings, told Bloomberg in an interview. Rogers had alluded to a stock market crash earlier too. “We could see the worst crash in my entire life pretty soon,.” he told Kitco news in August-17.
More recently, Bill Gates said that a 2008 like financial crisis is a certainty. “It is hard to say when but this is a certainty. Fortunately we got through that one reasonably well,” Bill Gates wrote in response to question posed by a reader in an AMA (Ask Me Anything) session on Reddit in February-18.