Howard Marks explains how to avoid crashes by learning to recognize signs of bull-market excess

Oaktree Capital founder Howard Marks is a boldfaced name on Wall Street, equally well known for his firm’s performance as for his lengthy investor letters that he periodically publishes free online to reach the widest possible audience.

In the intervening months, Marks once again was proved correct, reminding his audience why Warren Buffett once described his memos as “must reads” for anybody interested in markets. Old-school, bear market Before the pandemic relief hysteria took hold, Marks argues that the most recent true bull market was the dot-com boom of the late 1990s-early 2000s. Although stocks rallied during the run-up to the Great Financial Crisis, the market of those days moved only gradually, and it lacked the distinctive tone of unbridled optimism.

With this in mind, Marks delved into what he described as the three stages of a bull market: during the first phase, a handful of forward-looking investors bet that things will get better. During the second, more investors realize that underlying improvement is actually under way. And in the final stage, virtually all investors believe that the recent period of frothy returns will continue forever.

This time around, the “super stock” theme was complicated by the advent of cryptocurrencies, which introduced a new wrinkle to the old dynamic by magnifying investors’ hysteria as millions chased the nigh unprecedented returns that the original crypto investors had enjoyed. The advent of zero-fee brokerage accounts ushered in by Robinhood Markets Inc. HOOD and others was another innovation that set this market apart, Marks said.

Little late for that, Howard

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Hedge fund manager Alan Howard explains why he’s investing across the entire crypto ecosystemEXCLUSIVE: In an interview with The Block's RyanJamesWeeks, hedge fund titan Alan Howard reveals the full extent of his crypto activities — which span public and private markets, token and equity investing, and even generative art RyanJamesWeeks People, we need to tell everyone about this! RyanJamesWeeks non blue chip AB projects have a glimmer of hope
Source: TheBlock__ - 🏆 464. / 53 Read more »

NY native Chevonne Mansfield makes a big move to Howard - New York Amsterdam NewsChevonne Mansfield has moved multiple times for her career, but New York energy will always be a driving force.[...]
Source: NYAmNews - 🏆 269. / 63 Read more »

Bridges: Yorkton's Randy Goulden marks a milestone year with SUMA victoryThe Saskatchewan Urban Municipalities Association\u0027s new president endured a personal loss amid a noteworthy year for the Yorkton councillor.
Source: TheStarPhoenix - 🏆 253. / 63 Read more »

After Tough Times, Marks & Spencer Swings to Profit in Fiscal 2022The retailer saw sales climb nearly 7 percent in the 12 months to April 2 compared with the pre-pandemic year, and 19 percent over 2021.
Source: wwd - 🏆 24. / 68 Read more »

Marks & Spencer's chic floral midaxi is the day-to-night dress your summer wardrobe is missingLouise Roe's floral Marks & Spencer midaxi dress is so chic
Source: RedMagDaily - 🏆 312. / 61 Read more »

Today marks 2 years since George Floyd was murdered by Minneapolis PoliceFloyd's death sparked weeks of protests and calls for police reforms across the country.
Source: CBSNewYork - 🏆 268. / 63 Read more »