CNBC reported live from the Delivering Alpha conference Wednesday and interviewed Howard Marks (Trades, Portfolio), co-chairman of Oaktree Capital.
Marks, known for his thoughtful memos, warned that when the market lost momentum, the end would be worse for FAANG (Facebook, Alphabet, Apple, Netflix and Google) stocks and ETFs that hold them.
"The question with stocks is not, where is the growth?" he said. "The question is how is the growth priced. Is the growth priced fairly or are people ga-ga over the leaders because they're so great?"
He also gave his thoughts on risks in the market, saying higher interest rates would mean fixed income would begin to compete with stocks. He thinks stocks are no longer cheap but fairly priced.
Watch the video here:
