Skip to content

Mark Mobius Sees ‘Storm Clouds’ in Brazil on Rising Rates, Vote Angst

  • Leftist candidate seen winning vote, could be good for markets
  • Mobius’s top picks include Fleury, Lojas Americanas and Totvs
Mark Mobius, co-founder at Mobius Capital Partners
Mark Mobius, co-founder at Mobius Capital PartnersPhotographer: Simon Dawson/Bloomberg

The veteran emerging-market investor Mark Mobius is warning that a storm is coming for Brazil stocks as the country grapples with higher global interest rates and political volatility ahead of presidential elections.

“The outlook for Brazil is somewhat cloudy,” said Mobius, who left Franklin Templeton Investments in 2018 to set up Mobius Capital Partners. Known by his usual bullishness on developing-nation markets, Mobius has a history of correctly calling the rebound for Brazil’s stock market, most recently in late 2020, after domestic assets were crushed by the pandemic. But this time, higher borrowing costs and an uncertain political environment have “storm clouds appearing,” with the risks potentially offsetting depressed valuations in Brazil’s stock market.