Investor Mark Mobius called bitcoin leading indicator for the stock market

He noted a direct correlation between the rate of the first cryptocurrency and the subsequent change in the Dow Jones Index

24.06.2022 - 11:40

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2 min

What’s new? Mark Mobius, an investor and co-founder of Mobius Capital Partners, a management company, advised stock traders to keep a close eye on the cryptocurrency market. According to him, digital assets are “a measure of investor sentiment.” Mobius classified the bitcoin rate as a leading indicator that is in direct correlation with the Dow Jones Index and reflects its upcoming changes in the short term.

Bloomberg’s material

The Dow Jones Index is a stock index designed to track the development of the industrial component of the American stock markets, covering the 30 largest US companies.

What else did Mobius say? He noted that as long as investors keep talking about buying on dips, the bottom of a bear market has not yet been reached. Only when institutional and retail investors stop putting more money into the market because of losses one can start buying stocks, Mobius added.

Unlike investors who prefer to allocate their capital to real estate, precious metals, or cryptocurrencies because of rising inflation, Mobius intends to “hold some cash.” He noted that he may later invest in Indian stocks of companies in the fields of building materials, software, and medical research.

In May, Mobius warned cryptocurrency traders against using the buy the dip strategy. According to him, the strategy will not work until the price of bitcoin reaches $20 000, from where a rebound may occur.

Mark Mobius is an American investor who previously worked at Templeton Emerging Markets, an investment fund, and Franklin Templeton Investments, an asset management firm. In 2018, he co-founded Mobius Capital Partners, which manages assets worth more than $40 billion.

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