Mark Mobius

Photo Credit: The Wall Street Journal

Technically, we will be in recession in most parts of the globe, including India: Mark Mobius

At a time when markets are seeing a bloodbath across the globe, what do you think has led to the accelerated selloff today? Was it Trump’s comment, his mishandling of the situation or is it genuine panic about the virus and its escalation?

Initially, Trump tried to downplay the issue for a good reason. He did not want to spread panic but when no payroll tax cut was announced, that was a disappointment to the US markets. The US market leads everybody nowadays because with these exchange traded funds (ETFs), the impact becomes global. Whenever the US market goes down, in the short term, the correlation between the Chinese market, the Indian market and all these markets around the world are very close to the US whenever there is a panic situation. So, I am not surprised that this has happened.

Source: The Economic Times