FAST FIVE: Howard Marks: Now Is Not A Good Time To Be Investing
In an interview on Bloomberg TV with Erik Shatzker, Oaktree Capital's Co-Chairman, and one of the most respected investors on Wall Street, Howard Marks flat out said that anyone buying stocks here, with the S&P at nosebleed record levels benefiting from the Fed's $100 billion per month liquidity injection, will likely lose.
Referring to his latest memo published earlier today and titled “You Bet”, in which Marks discusses his investing life as a “gambler”, Marks said that now more than ever is a time when investors need to be careful, not just where they invest but whom they invest with.
For example, the market for large-cap equities has become so efficient that, as with roulette, outcomes have more to do with chance than stock-picking ability.
or skill, and the best returns come from merely levering up on the S&P500.
As such the only question is whether one bets alongside central banks, or bets that they will fail.