Mark Mobius: Cryptocurrencies are a measure of investor sentiment

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According to Mark Mobius rule the sell off in the markets is not over yet

If one wants to invest in stocks at the current juncture, one need do little more than turn their attention to cryptocurrencies right now.

This is recommended by Mark Mobius, who founded Mobius Capital Partners after more than three decades at Franklin Templeton Investments.

“Cryptocurrencies are a measure of investor sentiment. When bitcoin goes down, the next day the Dow Jones goes down. That’s the pattern and it shows that bitcoin is a leading indicator. Only when institutional investors and retail investors stop putting more money into the market because of losses does it appear that the market’s decline has bottomed out, he said. And then it’s time to start buying stocks.”

The big sell off in cryptocurrencies

Concerns over global recession risks have wiped billions off Bitcoin’s market value, with the cryptocurrency collapsing about 70% from its peak to near $20,000.

This drop coincided with the plunge into bear market by the closely watched MSCI global equity index, with investors worried about the impact of interest rate hikes in most countries as well as supply chain disruptions in China and Europe.

As long as Bitcoin investors “are still talking about markets, it means there is a sense of hope,” Mobius said.

“It also means we haven’t reached the bottom of a bear market.”

The veteran emerging markets investor said he prefers to hold “some cash” at the moment and may use it in Indian stocks in the building materials, software and medical testing sectors.

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