Celebrity investor Mark Mobius says in dire warning: “It’s only going to get worse from here” for stocks—and “The Big Short’s” Michael Burry agrees.

In recent years, leading investors have repeatedly warned Americans about a bubble forming in the stock market and the growing possibility of a U.S. recession.

And even after a roughly 19% drop in the S&P 500 so far this year, some of the world’s best market watchers continue to sound the alarm.

In an interview with CNBC on Tuesday, Mark Mobius, co-founder of Mobius Capital Partners, predicted that the US stock market will experience more pain this year.

“I still think it’s going to get worse,” he said. “Generally speaking, the picture looks pretty bad.”

The 86-year-old economist and former Franklin Templeton executive argued that US investors have not yet fully priced in the Federal Reserve’s interest rate hikes, which will lead to further stock market declines.

Mobius wasn’t the only top investor to warn Americans of potential stock market woes this week.

Michael Burry, who became famous for predicting and profiting from the 2008 housing bubble, as portrayed in both the book and the film the big short he said to one Wednesday’s Tweet that stocks have not yet reached their cycle lows.

Fund manager Scion Asset Management argued that the implosion of the once-big special purpose vehicle (SPAC) market is just the beginning of a bursting superbubble.

“No, we haven’t bottomed out yet,” he wrote. “Watch for failures and then look for the bottom. Failure 2 ETF SPAC is not close enough.”

European and Chinese economic woes

While US stocks are likely to struggle for the rest of the year, the situation is much worse elsewhere in the world.

Mobius noted that the issues in the US economy “are nothing compared to what Europe, China and others are facing.”

Europe is in “deep trouble” due to its ongoing energy crisis and rising inflation, Mobius said, adding that the European Central Bank (ECB) would have to raise interest rates “dramatically” to bring consumer prices under control. which will likely trigger a recession.

“This is a very bad scenario for Europe,” he said. “We think it’s going to get worse before it gets better.”

Mobius, which specializes in emerging markets and runs the Mobius Emerging Markets Fund, also pointed out that while emerging market stocks have underperformed in 2022, this is mainly a result of problems in China.

China has faced a myriad of problems this year, from a record heat wave that caused widespread power outages to ongoing COVID-19 lockdowns and even a real estate crisis (or housing bubble burst) described as a “ticking time bomb.” Mobius said these factors, along with rising tensions with the West, are weighing on the Chinese economy.

“China is in real trouble. it will probably get worse there,” he added.

But the issues in China don’t make all investments in emerging markets a bad idea. Mobius noted that some Asian markets, including those in Thailand, Indonesia and India, are beginning to overtake European and US markets. He argued that this was due to the reduced relative impact of the European energy crisis and the war in Ukraine.

However, Mobius recommended a more selective approach to stock selection going forward, regardless of the market.

“It’s time now to be very, very selective about what you want to buy anywhere in the world,” he said.

This story was originally featured on Fortune.com

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