Howard Marks: In Investing It’s Really Easy To Be ‘Average’
In this fireside chat with the HKUST Business School, Howard Marks discussed the cyclical nature of markets, emphasizing that cycles are driven by excesses in psychology and behavior.
He explained that an excess of positive psychology leads to unsustainable behavior above the trend line, which eventually corrects back, often overshooting in both directions.
Marks also highlighted his shift from equity to credit, particularly high-yield bonds, which have been a powerful force in investing since 1978.
The key to OakTree’s success, he noted, lies in risk control, consistency, specialization, and avoiding reliance on macro forecasts and market timing.
Here are some key points from the chat:
Q: Where do you think we stand in the…
