In the Press… How to Spot a Bubble?
Howard Marks, FT, Wednesday, January 8, 2025: In this article, Howard Marks, co-founder and co-chair of Oaktree Capital Management, argues that “US stocks are frothy, but there seems to be no outlandish bubble.” The methodology used to make this assessment is particularly insightful. Howard Marks suggests that, when identifying a bubble, a psychological diagnosis is often more effective than relying solely on valuation parameters. This may appear as a provocative claim, but we, too, have often argued that “fundamentalists” frequently […]