(Archworldys) Investor veteran Mark Mobius said that people should look at emerging market stocks as global equities are sold among emerging concerns about coronavirus.
Mobius, an established partner of Mobius Capital Partners and an emerging market investor, said CNBC’s “Closing Bell” Friday will affect the outbreak of “temporary” stocks.
“The good news about this particular virus is that the world you are looking at and that many scientists are working on solutions,” Mobius said. “And of course in China, with a dominant economy, they can put resources behind the healing and casting. So I don’t think it will be as long as people expect.”
As of Friday afternoon, there were about 10,000 confirmed coronary virus cases and about 200 deaths. The Center for Disease Control confirmed a case in Santa Clara, California, marking at least the seventh in the United States.
Major airlines have suspended the service to mainland China, and the US government announced that it will quarantine US citizens return from Hubei province for up to 14 days.
Stocks are sideways sour around the world Friday. In the US, the S&P 500 fell 1.77% and Dow Jones Industrial Middle fell 2.09%.
MSCI’s iShares Emerging Markets decreased by 2.02%, which traces global stocks.
Despite believing that global stocks will bounce back, Mobius said that emerging markets could suffer a sharp shock next week.
China’s major stock exchanges will open on Monday for the first time since January 24, as the Lunar New Year holiday break has expanded as coronary viruses expand. This could mean that Monday’s global markets would have a rough day, Mobius said.
“If China hits, then the rest of the emerging market countries also hits, as the ETFs in emerging markets are generally, and the heavy weighting in China impact on the index, “said Mobius.
Mobius also said that, while the outbreak would cause economic growth in China and countries around Asia, it may not have a major impact on other markets such as Latin America.
“It is very important for us in emerging markets to distinguish who will affect them and what effect it will have,” said Mobius.
