Bond prices are 'very attractive' at these rates: Mark Mobius

Mobius Emerging Opportunities Fund Chairman Mark Mobius, who is joining me, as we said first on Fox Business, Mark, we see the French elections lifting up European markets today, even though there was no definitive answer here. And then you see what happened this weekend where you had Democrats chattering amongst themselves concerned, saying many of them, including the New York Times and the Atlanta Constitution, saying that Biden needs to leave. How does something like this affect the markets short term, Long term? Well, you know, it's really amazing to see the parallels between what's happening in Europe, not only in France, by the way, but in other parts of Europe and what's happening in the US. And it seems that there's a move towards a more conservative view of the world. You know, in the past, Trump's policies and Le Pen's policies against immigration, a more considerative stance towards Ukraine, were pretty unpopular. But now it seems that the the mood of the populace both here and in Europe is changing gradually. It hasn't changed completely, but changing gradually. From a global point of view, I would say that a stronger president is usually more acceptable once he gets into power. So if Trump does win, it will probably be somewhat positive in the emerging countries because they will feel that there's more stability and you'll probably see the US dollar continue to be strong. So it's a very, very interesting development that's taking place now. Well, you, you say more stability of Donald Trump has called certain African nations not very nice names. But on on another side of that, Joe Biden has done things that have not been helpful for certain emerging markets. Specifically though, when you look at the developed world, one of the questions during the debate was about NATO and Donald Trump was asked would you exit NATO and he shrugged basically. So you would think that European markets might be extremely concerned. And when you look at bringing it back to what's happening in France, Macaw has a pro growth strategy and who knows if that will continue if Marine Le Pen or some other entity were to take control. So there's a lot of upheaval here. What is the best tack that investors should take in those types of situations? Well, my feeling, first of all, is that euro is not in not good shape generally from an economic point of view. So you're better off in the US and in the emerging countries like India. By the way, latest numbers for India's, the growth rate is over 7%, which is amazing. So generally speaking, I would probably steer away from Europe, not totally. Those companies in Europe that have a big holding in the emerging markets, including India, would probably be the ones you want to favor. But otherwise you'd be probably very careful. I believe the US dollar is going to continue to be strong and you're going to see bond prices at these rates are very, very attractive for anybody looking at U.S. dollar investment. So I believe that Europe is probably a place to avoid at this stage of the game. OK, and let's talk quickly about the bond market globally. You look at bonds, Saudi Arabia has just dethroned China as the biggest emerging market issuer of first half of the year, selling around 35 billion in deals. If you were advising investors who might want to get in as part of something like that and they'd like to dip their toe in that kind of international investing, how would you advise they do that? Oh, it's very easy to do that. Just contact brokers here in the in the UAE and Abu Dhabi and even in Saudi Arabia and you can buy bonds. the US dollar dominated bonds by the way. But you don't have to look at the interest rate. The interest rate is about 5%, not much better than U.S. Treasuries. So you have to ask the question, why do you want to go there when you can do something right in the US? So I would be somewhat cautious in looking at some of these bond markets overseas when you're getting these incredible rates in the US. Nevertheless, Saudi Arabia is going from strength to strength. They're opening up more and more. It's a huge economy. It's a growing economy, but they need money. They need money to grow. So they're issuing how to be. Yeah. Mark, it's great to see you. Thank you for staying up late for us. I know you're in the Middle East. We appreciate it. Thank you.