You have always been a long-term Indian bull. We have corrected just a little from above. We are still at 25,000 on the Nifty. What are the objectives that are set before the end of the year?
Marcos Mobius: Probably 50,000 or more, who knows? But not before the end of the year, next year.
Apart from property and infrastructure, what are the spaces where you would continue to buy more and more in case of declines?
Marcos Mobius: What we will see in India is the development of the chip industry. You will see a very rapid development of semiconductor production and that means all the infrastructure and all the support for chip development and design. So what we’re going to see is many, many opportunities to buy these companies. These are basically software companies. They call them companies without fables. They don’t have fabs, they don’t have factories, but they design. And of course, these companies will increasingly appear in India.
Last time, when we had this conversation with you, you mentioned that you are watching the mining sector very closely. With what’s happening in China, the way the metals counters have moved in the last few trading sessions, have you taken a closer, deeper look at them now, the mining sector?
Marcos Mobius: Yes, mining is very, very interesting because raw material prices are going up. Copper is up and of course other commodities are looking good besides oil. Generally speaking, we’re not too excited about companies that mine or drill for oil, but we’re more interested in companies that supply equipment to these industries. In the case of mining, it would involve hiring heavy equipment. In the case of oil, oil service industries, these types of people, because their income tends to be more stable in the long term.
If you had $100 to invest in asset classes and markets, how would you divide it?
Marcos Mobius: Stocks are always on top, there’s no doubt about that; 10% in gold, but all the rest in stocks. From time to time, when we have cash, we invest it in short-term fixed income, but that is not something we would hold for the long term.
I want a country split on how 90% will be distributed among global market stocks.
Mark Mobius: It would be at least 20-30% in India, 20-30% in Taiwan, maybe 10% in China, 10% in Korea and then the rest scattered throughout Vietnam, Thailand, Indonesia, Malaysia, Turkey and a little bit in Brazil.
How is it possible that the United States has completely skipped his list?
Marcos Mobius: Well, the United States is there, but it is reflected in these countries. So, for example, there are many stocks listed in the US that are actually Indian stocks, Chinese stocks, Malaysian stocks, or any stocks listed in the form of ADRs. Additionally, there are some stocks in the United States that have incredible exposure to emerging markets. So there will be some of them in the portfolio.
You have always been a big bull in India. What you have mentioned is a Nifty target of around 50,000 until next year. So what is your goal for Sensex?
Marcos Mobius: Probably 100,000. As you know, I made a prediction in the past and we are not far from that. Therefore, you will probably see many more advantages.
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