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

Ray Dalio: Recent Market Dips Are Minor Corrections

The head of Bridgewater Associates, the world’s largest hedge fund, says that “the latest sell-off in stocks and bonds is evidence of typical market behavior in the later parts of a cycle and has come sooner than the firm expected.” This according to a recent article on The article cites a recent blog in which Dalio explains how the current “late-cycle” behavior is more pronounced due to the increased sensitivity of investment assets to… Read More

Schwab Chief Strategist Warns of Market Headwinds in 2018

In a recent CNBC interview, Charles Schwab chief strategist Liz Ann Sonders warns investors to expect more headwinds given that the economy and the markets are in the late stages of the cycle—and cites increases in both capital spending and productivity as indicators. “That doesn’t mean we’re at an imminent end,” Sonders explains, “but it’s later-cycle-type behavior.” She adds that tighter monetary policy and the Fed’s “unprecedented” shrinking of its balance sheet as factors that… Read More

When Everything Seems Good, Investors Should Still Prepare for Market Dips

The bull market and upbeat economic landscape doesn’t tell us much about the future, says a Wall Street Journal article from earlier this month, “and the rise in stocks makes it less likely the general awesomeness will continue.” According to the article, worry has “all but disappeared this year,” but this creates a situation where investors are less prepared for bad news. However, the article argues, there are “few signs of irrational exuberance” to make investors wary.… Read More