I’ve been meaning to post this interview by Howard Marks for a few days now. He was on Bloomberg last week offering some market insights. For those who aren’t familiar, Marks is the founder of OakTree Capital and the author of the excellent book “The Most Important Thing”. He’s best known for his distressed debt strategies and understanding of the credit cycle.
Some key points from his interview:
- The US economy is on a modest upward trend.
- The Fed’s policy is “reasonable”.
- Europe is not going to implode.
- Doesn’t believe anyone can be consistently superior using a macro judgment.
- Understanding mistakes is crucial to understanding investing.
- The hedge fund business is likely to decline in size.
- You must understand second level thinking and the ability to break down probabilities.
- The best opportunities currently exist in real estate and real estate related debt.
Source: Bloomberg TV
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.