The Calculus of Value

In this monologue podcast, Howard Marks presents his memo, "The Calculus of Value," offering an update on asset values and investment strategies. He discusses the concepts of value and price, emphasizing that an asset's value is derived from its earning power and fundamentals, while price is influenced by investor psychology. Marks analyzes the current state of the U.S. stock market, noting elevated valuations and potential risks, including the impact of tariffs and investor behavior. He suggests a defensive approach to investing, advising caution and a shift towards more secure assets, while acknowledging the potential for continued market gains and the complexities of assessing true value in the face of evolving economic conditions and technological advancements like AI.