In one of his famous “memos” released on Nov. 23, Howard Marks (Trades, Portfolio), co-chairman of multibillion-dollar asset management firm Oaktree Capital, noted that while there have been a lot of social and political changes over the past year, there is little that is new in the investment world.
The paper, titled “The Winds of Change,” began with an overview of the biggest concerns as of late, which include economic resurgence, the securities market’s rise and growing worries with regard to inflation following the Covid-19 pandemic.
Marks wrote:
“All three of the conditions listed above were present months ago, and they’re little changed today. Thus, in the investment environment, it’s still Groundhog Day. Yet there are changes taking place, and they’ll be the subject of this memo. My focus isn’t the ‘little macro’ changes, like what will happen to GDP, inflation and interest rates next year, but rather the ‘big macro’ changes that will have an impact on our lives for many years. Many aren’t actionable today, but that doesn’t mean we shouldn’t bear them in mind.”
He then goes on to discuss the current environment for the market, the changing nature of business, inflation and the outlook for the traditional workplace, among other topics.
Read Marks’ full memo here.
