Howard Marks: Insanity Is Using The Same Investing Strategy In Different Environments
In his recent market commentary, Howard Marks recommends investors recognize that the investment environment and starting points greatly impact their success, especially over shorter time horizons.
Einstein’s quote about insanity can be reinterpreted to mean that expecting the same results in a different environment is also folly. The last decade saw unprecedented low interest rates, resulting in long economic recovery and bull markets, making it favorable to own and borrow for assets.
However, this period has ended, making fixed income investments potentially more attractive than equities due to their competitive and more certain yields. Investors should adapt to these changes, as advised by economist Paul…
