For several years, investors have been acting bullish (if not thinking bullish) in bonds, bidding up safe instruments, while the interest in equities is still modest, with the potential for more relative value, says Oaktree’s Howard Marks. H/T cornerofberkshireandfairfax Howard Marks video and transcript below Jason Stipp: Howard, you have a process that you call taking the temperature of the market. This is where you look at things like the attitudes of investors and commentators, headlines, the interest in new issuance, the amount of leverage that’s taken out. When we spoke about a year ago, you said that the mood of the market was moderate. It wasn’t too pessimistic, it wasn’t too optimistic, even though we were facing some European crisis issues. I am interested to check in with you today, given that the market is up about 25% over the trailing 12 months, what’s the temperature of the market now that we’ve seen a continuance of this bull market? Howard Marks: When we last spoke, by the way, most people when they say “the market,” they mean the stock market. I don’t, because our business is credit. And when I say the market, I am kind of talking about all the markets [...]
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