Mark Mobius is an investor.
South China Morning Post.
Mark Mobius said that the steep equity market sell-off is a good time to buy profitable technology stocks such as the FAANG companies.
These companies that have been hit by the decline in tech stocks are great buys right now.
The Federal Reserve's December meeting minutes showed that the central bank could start withdrawing support for the economy and raise interest rates sooner than expected.
The benchmark S&P 500 fell 1.94% while the tech-laden Nasdaq 100 index dropped 3.12%. Analysts see Ark Invest's innovation fund as a proxy for unprofitable and speculative technology companies.
The founder of Mobius Capital Partners, a veteran emerging-markets investor, told CNBC that he was interested in the FAANG companies because they are strong earners.
All were hit in Wednesday's sell-off, with Alphabet down the most at 4.59%.
Goldman Sachs highlights 21 stocks that it sees offering high sales growth and fat margins through the next five years.
Even as borrowing costs rise, investors need to be looking for good stocks that can deliver strong returns.
Those companies that are losing money in the tech sector are going to get hit very badly, and of course those that are making money will do well," he said.
The tech sector performed well in 2020 and 2021, as central banks snapped up bonds and slashed interest rates after the coronavirus hit, with investors betting the companies could keep growing even as the economy slumped.
The era of easy money that boosted some unprofitable companies is likely to end in 2022, when the Fed is expected to raise interest rates multiple times.
As the economy grows, borrowing costs rise, and inflation remains elevated, investors are turning to businesses that can do better. Energy and financials have been popular buys.
There will be plenty of investor willingness to buy and sell stocks in the market, according to Mark Mobius.
He said that a lot of currency have been issued around the world because of COVID, and that all of the cryptocurrencies are making people feel rich.
Business Insider has an original article.
