Mark Mobius: Stocks Are Probably Going Lower

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by Tyler Durden
Thursday, May 12, 2022 - 06:41 PM

As the S&P 500 approaches bear market territory, stable coins implode left and right and the rising dollar creates more stress in the global financial system, Mark Mobius, who appeared on CNBC's "Squawk Box" Thursday morning, offered some interesting comments about crypto and equities.

When it comes to price action, investors could be forgiven for believing that crypto has become the tail that is wagging the dog, Mobius pointed out. And when it comes to equities, Mobius told CNBC's Joe Kernan that the S&P 500 is likely headed lower - although stocks are approaching an area where they're looking reasonably priced.

Crypto, meanwhile, has become a leading indicator for market pessimism, and they're showing that stocks are "probably going lower too" as people start to "give up hope".

It "looks like a lot of people are beginning to give up hope.”

Mobius added that

“We are not at a bottom but may be at the beginning of one. A bottom needs everyone to give up hope.”

While we haven't reached "the bottom" yet, we might be at the "beginning of the bottom".

Still, "this is a great time to be picking up bargains if you're looking at the right stocks."

At least, this is what the world looks like when crypto is "the dog" and stocks are "the tail".

It's worth pointing out that when it comes to forward PE ratios, stocks are back to their pre-pandemic levels.

Just some food for thought.