4 Investing Ideas As Market Brushes Off S&P 500 Highs
Investment manager Howard Marks is chairman of Oaktree Capital (OAK). In an interview, Marks described the problems of debt in the world today. Marks cites Japan, whose economy failed to be reignited over the last 25 years. When Japan gave money to people, expecting them to spend it, people saved it instead. Their psychology was dominated by worry, so keeping money in the bank mattered more than spending it to help the economy. [More list articles: Why Expect More Price Swings from These 4 Biotechs]
On the S&P 500, now at a 5-year high, Marks says it is a statistical trick. The index was higher 6 years ago, and was higher 12 years ago. The time of reference changes the importance of the S&P 500’s 5-year high. Investors who had money in markets 12 years ago did not make any money.
Marks is a fan of gold. Gold is an asset that does not produce any cash flow. Without knowing how to price an ounce of gold, making any statements about what the right price is cannot be done for gold.
Business Section: Investing Ideas
1. Oaktree Capital Group, LLC (OAK): Oaktree began trading as public company last year. Shares are up significantly at around $48.80 since then. Shares dipped recently, because of an upcoming dividend payment of $1.05.
Companies held by Oaktree Capital Management include: