Markets

Mark Mobius agrees with Cooperman that a 25% market drop is possible if Warren elected

Key Points
  • Mark Mobius agrees with Leon Cooperman that the market would fall 25% if Elizabeth Warren is elected president.
  • A 20% or 25% drop "is probably possible," he says.
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Mark Mobius: The market could drop if Trump isn't re-elected

Mark Mobius on Wednesday agreed with fellow investor Leon Cooperman that the stock market would drop 25% if Democratic candidate Elizabeth Warren is elected president in 2020.

"I would go along with that," Mobius said on CNBC's "Closing Bell" when asked about the comments made earlier in the day by Cooperman, a billionaire investor.

"I've said that if [President Donald] Trump is not reelected, the market would go down," said Mobius, founding partner of Mobius Capital Partners. A 20% or 25% drop "is probably possible."

Cooperman, chairman and CEO of Omega Advisors, took issue with what he called Warren's "war on billionaires." He told CNBC that he believes in a progressive income tax structure where rich people pay more. But he said Warren's wealth tax, which calls for an annual 2% tax on wealth of more than $50 million and 3% on wealth over $1 billion, is "baloney."

Mobius has previously suggested that Trump has been a boon for stocks.

In August, Mobius said the U.S. markets would go "haywire" if Trump failed to win a second term in the White House due to the loss of his "business-friendly" policies.

However, Mobius said Wednesday that the Trump administration's trade war with China isn't having a favorable impact on business.

Mobius said that the trade conflict is causing a slowdown in the global economy, adding that he hopes the U.S. and China will come to an agreement soon.

The Warren campaign did not immediately respond to a request for comment. 

— CNBC's Maggie Fitzgerald contributed to this report.