Howard Marks: Expect interest rates to remain high

Co-Chairman and Co-Founder of Oaktree Capital Management, Howard Marks, recently spoke with David Rubenstein of Bloomberg about a number of interesting topics.

Here he says that he expects interest rates to remain high well into the future, about his views on the true value of credit instruments and the psychological aspects of investing.

On the latter, he says, among other things:

The other thing is people believe that there’s kind of a direct and mechanical linkage. If a company has a good event the securities do well, if they have a bad event, like earnings, securities do poorly. But that’s not the case because there’s a intermediate step, which is people’s reaction.

So it’s not just whether the event was positive it’s how people reacted to the event that determines the impact on the security prices, and that’s two different things. So you can’t forget the the psychological and human factor.

Share the news

Disclaimer of liability

The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.

Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk

You might also find this interesting:

Francois Rochon: Navigating Market Crashes

Francois Rochon, CIO of Giverny Capital, recently shared his approach to navigating market crashes on the Meb Faber Podcast. His perspective emphasizes acceptance, preparation, and strategic action rather than panic or futile attempts at market timing.

Howars Marks: Take advantage Of Trumps Own Goal

In his latest memo “Nobody Knows (Yet Again)”, Howard Marks addresses the profound uncertainty facing investors and policymakers amid recent upheavals in global trade and economic policy. Drawing on parallels to the 2008 financial crisis and the Covid-19 pandemic, Howard emphasizes the limits of forecasting in unprecedented situations and the importance of rational, flexible decision-making despite the absence of clear answers.

François Rochon: Quality over Diversification

In this recent interview, François Rochon, founder of Giverny Capital, shares his insights on optimal portfolio strategy. François emphasizes a balanced and disciplined investment philosophy that prioritizes quality over excessive diversification.