In a recent interview with CNBC Howard Marks provided his thoughts on the short term future for the stock market saying:
“We’re only down 15% from the all-time high of Feb. 19,” Marks, co-founder of Oaktree Capital Management, said Monday on CNBC’s “Halftime Report.” But “it seems to me the world is more than 15% screwed up.”
However, such rallies are characteristic of a bear market, Marks said. He also noted that, historically, the market has followed up such moves higher with tumbles into lower lows.
“It took seven years to get back to the 2000 highs in 2007,” Marks said. “It took 5½ years to get back to the 2007 highs in late 2012. So, is it really appropriate that, given all the bad news in the world today, we should get back to the highs in only three months? That seems inappropriately positive.”
“People are traumatized, and not just because of the performance of their stocks,” Marks said. “Everybody’s life is hugely changed.”
However, Marks added that people are “overestimating” how much different life will be in five years, given how short the market’s memory tends to be.
You can the the entire article here: CNBC – Widely followed investor Howard Marks says the stock market rebound is not reflecting reality.
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