Mobius: Why it’s best to keep your powder dry as stocks plunge

Renowned investor Mark Mobius has shared his insights on the current state of the global stock markets in a recent interview with CNBC Africa. The veteran investor, known for his expertise in emerging markets, highlighted the historical context of market downturns, citing past crises such as the US mortgage crash and the Asian financial crisis. Mobius emphasized the importance of keeping a level head during times of market volatility, noting that panic selling often leads to opportunities for savvy investors to capitalize on undervalued assets. He pointed out that the prevalence of exchange-traded funds (ETFs) exacerbates market fluctuations, as automated trading magnifies the impact of large sell-offs. Mobius expressed cautious optimism about investment prospects in South Africa, recognizing the country's attractive valuations but highlighting macroeconomic challenges such as currency depreciation and potential credit downgrades. Despite the recent steep declines in the South African stock market, Mobius advised a "wait and see" approach, urging investors to monitor developments and be prepared to act when opportunities arise. He also called for proactive government intervention to address structural issues, suggesting reforms in the energy sector as a key step towards economic recovery and stability. In the face of ongoing market turbulence, Mobius reiterated his belief in the resilience of well-managed companies and the potential for shrewd investors to find value amidst the chaos.