“I expect rates to go much higher,” Mobius said. “That means…the glamorous tech stocks with no earnings and dependent on more and more cash inputs will be in trouble.”
Even after last month’s correction, the S&P 500 and Nasdaq have respectively fallen 13.3% and 19.6% year-to-date. Mobius added that he expects the sell-off to continue until markets reach a point of “complete surrender.”
“Of course, we must realize that we are already in a bear market but the endgame requires complete surrender on the part of investors,” he said. “Currently, there is a lot of hope.”
