In this interview, Howard Marks discusses the influence of psychology on the market, using NVIDIA's stock drop due to DeepSeek as an example of temporary insanity and herd mentality affecting valuations. He advises investors to ensure their holdings are based on strong fundamentals rather than speculation. Marks also shares his perspectives on navigating market uncertainty, emphasizing the importance of alternative investments being isolated from market developments and focusing on companies with solid growth potential and debt repayment capabilities. He touches on the impact of interest rates on asset prices, highlighting a potential shift from declining to stable or higher rates, and expresses confidence in Jerome Powell's leadership at the Federal Reserve. Marks contrasts ownership assets (stocks) with lending strategies (fixed income), noting the current low equity risk premium in stocks relative to high-yield bonds. He expresses excitement about distressed debt opportunities due to potential capital structure issues arising from higher interest rates, while remaining cautious but not systemically worried about the private credit boom.
Sign in to continue reading, translating and more.
Continue
