Howard Marks: Nothing is a bargain

Howard Marks of Oaktree Capital has said investors should stick to their processes despite a lack of bargains in a world with inflated asset prices. "This world is an uncertain place with question marks about macroeconomics and geopolitics. In particular global growth has taken a substantial hit and it's an open question whether we will ever get back to the higher levels of growth experienced in the recent past. Asset prices are full today. I don't think we're in a bubble. But I view them as on 'the high side of fair' which means nothing is a bargain – nothing is available at laughably cheap prices." Marks says the combination of uncertainty and record low interest rates means investors are facing extremely low prospective returns. His advice to investors tempted to move along the risk curve in search of returns is to stay disciplined. “If you run from bus stop to bus stop you'll never catch a bus – but if you wait at one stop, eventually you will." (VIEW LINK) (Source: AFR)


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