REUTERS/Sukree Sukplang
- Markets "will go haywire" if Trump loses in 2020 since his policies are partially responsible for stocks’ recent highs, famous investor Mark Mobius told CNBC Thursday.
- Though Mobius expects the incumbent to win in 15 months, he noted that the way the media has covered the race has him feeling "a little concerned."
- All three major US stock indexes fell lower from recent peaks after Fed chairman Jerome Powell suggested Wednesday’s interest rate cut won’t be followed by more.
- Visit the Markets Insider homepage for more stories.
A 2020 loss for President Trump would send markets into a downward spiral, Mark Mobius said in a Thursday CNBC interview.
The co-founder of Mobius Capital Partners said Trump’s policies are partially responsible for recent market surges. A changing of the guard in the White House would disrupt steady growth, Mobius said.
"I think the markets then will go haywire because they’ve been depending on Trump policies to keep on pushing the market up and also higher growth rate in the US," Mobius told CNBC.
The S&P 500 and Nasdaq Composite closed at historic highs July 26. The Dow Jones Industrial Average hit its highest level July 15. All three major US indexes sharply fell Wednesday afternoon after Fed chairman Jerome Powell suggested the interest rate adjustment may not be followed by other cuts.
Though Mobius doesn’t expect the incumbent to lose next year, he said the media is "overwhelmingly" against Trump and will continue to be as the election draws closer. Mobius added the sentiment has him feeling "a little concerned."
Mobius launched the venture in summer 2018 after retiring from Templeton Emerging Markets Group. The London-based firm focuses on emerging markets, with 40% of its portfolio spread between China and India, according to CNBC.
The 82-year-old investment veteran criticized Brexit and the UK in March, saying government chaos and currency volatility are making the UK look like an emerging market.
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Source: Business Insider – feedback@businessinsider.com (Ben Winck)