Howard Marks on Why Investors Aren’t Worried

In a recent interview with The Wall Street Journal, Oaktree Capital Management co-founder Howard Marks shared insights on the financial markets and the economy. Here are some excerpts: According to Marks, it’s difficult to say if investors are overly optimistic. “I don’t think the stock market is delirious. Valuations aren’t terribly high.” Investors should be concerned, says Marks, about the “duration of the economic recovery and the possibility of inflation. It’s worrisome that the government… Read More

Howard Marks on the Market Cycle

In a recent interview with LinkedIn, billionaire investor and Oaktree co-founder Howard Marks shares insights on the current market cycle and where to find investment opportunities. Here are some highlights: According to Marks, everything active investors do represents either (1) asset selection; or (2) cycle positioning. With respect to the latter, he says, an investor “can’t do it based on predicting, but rather based on understanding where we are in the cycle.” Marks says we… Read More

Howard Marks on Improving Investing Odds

At the CFA Society Portland’s Annual Investment Strategy Dinner last month, Oaktree Capital co-chair Howard Marks said the two most important factors for investing success are managing risk and understanding where we are in the market cycle. This according to an article in CFA Institute. “We never can be sure of an outcome,” Marks told the audience, “but I think we can get the odds on our side by understanding where we are in the cycle.”… Read More

Burton Malkiel’s Review of Howard Marks’ Mastering the Market Cycle

An article in The Wall Street Journal offers Burton Malkiel’s review of Howard Marks’ new book, Mastering the Market Cycle. According to the article, the book focuses on Marks’ belief that “If we study past cycles, understand their origins, and import, and keep alert for the next one…we can master these recurring patterns for our betterment.” The article says the book “comes down to the insights of behavioral finance,” and that Marks (of Oaktree Capital… Read More

Oaktree’s Marks: Recession Isn’t Imminent

Although he sees no signs of an impending U.S. recession, Oaktree Capital co-founder Howard Marks believes it’s time to “adopt a cautious investment strategy,” according to an article in Bloomberg. The economy is still doing well, Marks told Bloomberg TV in Sydney, adding that despite the dearth of bargains in many markets, “strategies should still focus on remaining invested and position defensively, without piling into cash.” Marks said he doesn’t believe a recession is coming… Read More

Howard Marks Weighs in on Surviving Market Upheaval

A recent Barron’s article offers insights from Oaktree Capital Management co-founder Howard Marks on the recent uptick in market volatility. Here are some highlights of Marks’ comments: The market is no longer in an “optimistic” phase. “For some reason,” Marks said, “because of the way investor psychology works, people switch from only seeing the good to seeing only the bad. So, what I said nearly a month ago about the market being in an optimistic… Read More

The Challenges of Market Cycle Timing

By Jack Forehand (@practicalquant) —   Everyone wants to follow the investing advice of market legends. After all, that level of success is typically not achieved by accident. Investors want to learn from their wisdom. They want to do what they do. In some cases that can be a slippery slope, though, and it is important to consider the advice of market legends in the context of your own personal situation. . Howard Marks’ new Book, Mastering… Read More

Market Wisdom from Howard Marks

In a recent podcast, author Tim Ferris interviews Howard Marks to discuss the Oaktree Capital co-founder’s views on investor psychology, his new book Mastering the Market Cycle: Getting the Odds on Your Side, and macro issues related to the economy. The lengthy discussion spans Marks career, life lessons, and how to navigate an uncertain and random world. Here are some highlights: Marks emphasizes the importance of knowing your limitations as an investor. The phrase, “I don’t… Read More

Howard Marks: Computers Won’t Replace the Best Investors

In his recent memo entitled, “Investing Without People” Oaktree co-founder Howard Marks argues that passive and quantitative investing will all help keep markets efficient and reduce costs for investors. This according to an article in The Wall Street Journal. But while active managers have underperformed their benchmarks for years while charging high fees to investors, Marks doesn’t think the strategy is “dead,” adding, “I doubt computers can do what the very best investors do.” The… Read More

Some Thoughts on Howard Marks’ Most Recent Memo

By Jack Forehand (@practicalquant) —   Howard Marks’ memos provide some of the deepest and most thought provoking insights in the investing world today. They are on par with Warren Buffett’s annual letters as one of the few must reads in investing today. Marks just recently posted a new memo, and the topics he covered were very close to home for me as someone who believes in quantitative and factor-based investment strategies.  The memo was titled Investing… Read More