Elizabeth Warren's wealth tax won't be 'a big deal,' says investor Mark Mobius

• Prominent investor Mark Mobius says he doesn't think Elizabeth Warren's wealth tax "is going to be a big deal" because she's taken money from wealthy people for her campaign.
• But Warren had pledged to run a "grassroots-funded campaign" by turning down contributions from federal lobbyists or political action committees.
• Warren, a front-runner in the Democratic presidential nomination race, has made reining in the excesses of the wealthiest Americans and largest U.S. businesses a centerpiece of her campaign.

Democratic presidential hopeful Massachusetts' Senator Elizabeth Warren speaks to members of SEA/SEIU Local 1984, state employees, at the Holiday Inn in Concord New Hampshire, after signing papers to officially enter the New Hampshire Primary race on November 13, 2019.

Joseph Prezioso | AFP | Getty Images

U.S. presidential hopeful Elizabeth Warren's proposed wealth tax may not come to pass even if she's elected, says prominent investor Mark Mobius who added that the markets would still fall anyway.

Warren, a front-runner for the Democratic presidential nomination, has made reining in the excesses of the wealthiest Americans and largest U.S. businesses a centerpiece of her campaign. Several well-known business executives and investors have criticized her plans, saying a Warren presidency would harm financial markets and the economy.

"I don't think this wealth tax is going to be a big deal, frankly," Mobius, founding partner of Mobius Capital Partners, told CNBC's "Global Squawk" on Wednesday.

"Because if you look at who's giving money to Warren: wealthy people. So, they realize that it's talk," he added. "At the end of the day, when it comes to actual action, it's not going to be significant. I don't see a wealth tax coming in."

Warren's campaign did not immediately respond to a request for comment outside office hours.

Warren's campaign

In the third quarter, Warren's campaign said it raised $24.6 million with an average contribution of $26.

@TeamWarren: We're celebrating $24.6 million raised in the third quarter! That means: 500,000+ people making 940,000+ donations 300,000+ of those donors giving for the first time (welcome!) An average contribution of just $26.

While Warren, a senator from Massachusetts, has previously taken contributions from lobbyists and business executives in past Senate election cycles, she pledged to run a grassroots-funded campaign in the 2020 presidential race.

That includes turning down contributions from federal lobbyists and political action committees, and not taking donations over $200 from executives at Big Tech companies, top Wall Street firms, fossil fuel or major pharmaceutical companies.

Market correction

Several investors have predicted major losses for U.S. stocks if Warren wins the presidential election next year. Mobius is no different, and has forecast a 20% to 25% decline on Warren's election.

But Mobius explained on Wednesday that such a correction would not be triggered by Warren's wealth tax. Instead, it would be because U.S. President Donald Trump lost his reelection bid, he said.

Markets "will definitely have a big correction simply because the Trump policies have been so beneficial to the economy that any change, people will begin to say: 'let's hold back and wait,' and then you have a correction," said the investor.