Mobius spoke at the XI Bosphorus Summit organized by the Platform for International Cooperation (IPU).
Mobius said it was one of the best periods in human history because of technology: “Technology has made many things cheaper and better. So we are going through a deflationary period. Prices change, but quality also changes. “. used expressions.
Arguing that traditional inflation measurement indicators such as the Consumer Price Index (CPI) can no longer be used, indicators like these are no longer accurate, Mobius said that product groups from one period to another constantly change. “That’s why the product line in 1950 is quite different from the product line today. So, in short, apple and pear are compared.” saying.
Stating that it is sad that central banks make decisions by looking at the wrong indicators, Mobius made the following assessments:
“When we compare income to the prices of goods and services, people’s incomes are increasing faster, or at least at the same rate around the world. So I think it’s good for people to experience deflation. That means that goods and services are cheaper compared to income. What does it mean? That means political decisions must be made in terms of happiness, not inflation figures. We need to find an indicator that can measure how happy people are. ” .
” THE RELATIONSHIP BETWEEN IS EXTREMELY POOR ”
Mark Mobius said that the equity markets, which showed a strong performance in 2020, gave signs that they will also be good this year and that they expect significant GDP growth in the world from an economic perspective.
Mobius noted that technology and Internet stocks rose sharply last year, “companies like Tencent, Alibaba, Microsoft and Apple have risen considerably, but there is a downward trend in recent days. This raises a lot of doubts among investors. Many people look at interest rates, but the stock of interest rates. When we look at the relationship with the market, it will be seen that the relationship between these two is very weak. ” He spoke in the form.
Mobius said that one of the factors that played an important role in bringing stocks to this level is expectations about what could happen to these stocks in the future.
Stating that although many of them, like Tesla, lost money, these stocks have risen considerably, “But now they are coming back quickly. I suggest you look at the crypto money markets to understand this.” saying.
” WE MUST LOOK CAREFULLY ”
The “investment guru” Mobius continued his assessments as follows:
“The change in the prices of these assets, especially Bitcoin, can play the role of leading indicators for the stock markets. Because people’s belief in cryptocurrencies is similar to that of companies losing money in the stock markets. People think that these companies will generate large amounts of income in the future. So crypto. “If you talk to any young people now, you will see that many of them attach great importance to these coins. If this belief diminishes or disappears, then a significant selling trend can occur. We continue to see the opportunity. “
Turkey, Taiwan, indicating that they continue to invest in countries such as Brazil and India, Mobius brings important of these investments that they are already adding that they have achieved it.