Emerging markets investment guru Mark Mobius said he loves Indian stocks even though the Covid-19 cases in the country have risen because “this will pass”.
Indian Mark shares Nifty 50 has risen about 8.1% this year since the end of Tuesday. The index climbed despite country reports rebirth of Covid infection over the past month.
The South Asian country was among Mobius ’favorite markets even before the pandemic. The investor, who is the founder of Mobius Capital Partners, said it was “pretty amazing” that the Indian crisis Covid didn’t affect the stock market much.
“But generally speaking, we know that this will pass, that people will be vaccinated and that (the Covid case) the number will decrease,” Mobius told CNBC “Capital connection” on Tuesday.
“And given that, it’s probably a good opportunity to shop,” he added.
As part of the Indian Stock Exchange, Mobius said he loves software companies, healthcare supplies, as well as companies that provide equipment and materials for infrastructure projects.
Goods and crypto
At the store, Mobius said he still loves gold. He added that he prefers to keep physical gold than to buy mining companies, many of which “are not so profitable”.
But the veteran investor said he was “not so excited” about the oil sector. That’s because oil prices have had an “incredible speed” as they recover from the fall of the pandemic and may not rise much more, he said.
“I think we’re probably where we should be, $ 60 to $ 70 a barrel, so we won’t experience an incredible boom in oil companies,” Mobius said, adding that some companies could still be interesting, though he didn’t specify which one.
Another investment that Mobius does not like is cryptocurrency, which he called “a very risky area”.
Price from bitcoin it rose from below 30,000 at the end of 2020 to more than 43,000 on Wednesday.
Mobius said it is difficult to predict the direction of cryptocurrency prices and wondered how easy it is to convert bitcoin and other cryptocurrencies into “real money” that people can spend. He also disagreed with suggestions that bitcoin could replace gold as protection against inflation.
“I can’t have a crypto ring, while I can have a gold ring – that’s the real difference,” Mobius said.
“It’s a completely different situation and I don’t know why people say bitcoin can be like gold, it’s completely different. Gold is gold and it’s something physical, while bitcoin isn’t.”