We Study Billionaires - The Investor’s Podcast Network

TIP545: The Third Sea Change Has Begun w/ Howard Marks

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Apr 14, 2023

This week, Trey Lockerbie talks with Howard Marks, an investing legend and founder of Oaktree Capital. Howard shares his insights on the current Sea Change in financial markets, marking a pivotal shift in his 50-year career. He delves into how AI and Bitcoin are reshaping investment strategies and discusses the impact of a moderate interest rate environment on global debt. His reflections on Japan's economy and adapting to evolving market conditions offer listeners valuable perspectives on risk management and investment philosophy.

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INSIGHT

Market Cycle Drivers

Market cycles arise because people's actions go to extremes, driven by excessive optimism or pessimism.
These excesses create unsustainable situations that eventually correct, often overshooting in the opposite direction.

INSIGHT

Sea Change Defined

A sea change represents a fundamental shift in the market's underlying mechanics, not just cyclical fluctuations.
The shift to risk-return thinking in the late 70s exemplifies a sea change, expanding the investment universe.

INSIGHT

Impact of Declining Rates

Declining interest rates significantly impacted the financial world over the past 45 years, stimulating the economy and asset growth.
This gradual decline, like a "frog in boiling water," went largely unnoticed despite its massive impact.

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Simple but Not Easy

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Mastering the market cycle

Getting the Odds on Your Side

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The most important thing

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