In one of his famous “memos,” which was released Tuesday, Howard Marks (Trades, Portfolio), co-chairman of multibillion-dollar asset management firm Oaktree Capital, shared his thoughts on the market selloff that occurred last week as the coronavirus outbreak intensified.
The paper, titled “Nobody Knows II,” starts with a reference to the 2008 memo following the bankruptcy of Lehman Brothers, which is when Marks last used this title, as well as his memo from January on decision-making. The renowned investor revealed he has been, unsurprisingly, asked repeatedly to share his view of the coronavirus and its potential impact on the market, to which he replied, “If I said anything about the coronavirus, it would be nothing but a guess.”
“People may ask me for my opinion because they think I’m intelligent, think I’ve been a successful investor, or know I’ve lived through a lot of history,” he added. “But none of that should be confused with expertise on subjects of every kind.”
Marks then turns the conversation toward how much is unknown about the virus, as well as discusses what the potential economic impacts could be and how investors and the Federal Reserve might respond to these effects. He wrapped up his discussion with a somewhat nuanced answer to whether or not this is the time to buy: nobody knows.
Read Marks’ full memo here.
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