Legendary investor Mark Mobius told CNBC on Friday that markets would like a contested US presidential election.
“If that happens, then we really are in trouble. The markets may not like it and will see a genuine correction or perhaps a dramatic drop in the market, ”he said. “So this is a very, very big problem. “
The founding wife of Mobius Capital Partners added that if the electoral resolution goes to the Supreme Court, the procedure will be “prolonged” and will generate more uncertainty in the markets. Falling markets will count on the duration of the dispute, he said.
Mobius also said that a Trump victory was a more “favorable” end result for the markets, because “it’s all about taxes. “
“Trump promises some other primary tax cut. The Democrats didn’t say that, they plan to raise taxes on the so-called rich and on corporations. So this is the big, big problem that’s coming,” the investor said. ready for the dangers of a contested election, Mobius said he had invested in corporations “somewhat immune to economic downturns. ” Investors deserve a look at corporations with strong balance sheets and corporations that can maintain or increase demand for their products and services. he said.