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Veteran emerging markets investor Mark Mobius has shifted nearly all of his investments into cash, citing ongoing global trade tensions and market uncertainty. In an interview with Bloomberg Television, Mobius said that he currently has around 95% of his funds in cash, declaring that “cash is king” as the global economy navigates unstable trade dynamics.

Mobius, who has over three decades of experience investing across developing markets and co-founded Mobius Capital Partners, explained that trade conflicts especially between major economies like the US and China have created conditions too risky for heavy market exposure. While he believes the situation could stabilize within the next three to four months, for now, he prefers to sit on the sidelines until there's more clarity. “The current trade war situation could drag on for another six months,” Mobius said, warning that investors should stay cautious amid geopolitical uncertainty. He emphasized that staying liquid allows for swift re-entry into the markets when conditions improve.

Despite his overall defensive posture, Mobius remains optimistic about specific regions particularly India. He pointed out that the country stands to benefit significantly as global supply chains continue to diversify away from China. According to him, India’s growing software and electronics hardware sectors could attract considerable foreign investment as Western companies search for alternative manufacturing and tech hubs. Mobius is closely watching Indian equities in these sectors, expecting them to gain traction over the coming quarters. He added that India’s long-term growth story remains strong, especially if supported by reforms and continued foreign capital inflow.
On China, Mobius struck a more cautious tone. While not entirely ruling out investment in the Chinese market, he stated that his outlook would only turn positive if the country made significant improvements to its trade policies and took serious steps to stimulate domestic consumption. For now, the uncertainty surrounding China's stance on international trade and its internal economic strategy makes it a less attractive destination for capital.

While 95% of his portfolio is in cash, Mobius noted that he still maintains a minimal stake in S&P 500-linked funds. This is to keep pace with broader market trends and maintain exposure to any potential upside in US equities. He acknowledged that investor sentiment in the US remains fragile but believes political forces, particularly in an election year, may push for stability. “I don’t think Trump or any US administration would want to trigger a significant market crash,” Mobius said, suggesting that policies could emerge to support investor confidence in the run-up to the 2024 US Presidential elections.

Mobius's decision to move nearly all his assets into cash is being seen as unusually cautious even by conservative investment standards. While other fund managers have also dialed back risk in recent months, few have gone to the extent of a 95% cash position. Some market experts argue that Mobius could be missing out on opportunities, especially as several global indices outside the US have rallied strongly over the past few weeks. However, Mobius remains firm in his approach, emphasizing that risk management is key during uncertain times. "Preserving capital is as important as growing it," he stated. As markets continue to react to political developments, inflation data, and shifting trade alliances, investors will be watching closely to see when Mobius reenters the market and where he chooses to deploy his capital first. Until then, his move stands as a clear signal of caution in turbulent economic waters.