The Memo by Howard Marks

Coming Into Focus

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Oct 19, 2020
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INSIGHT

A Different Kind of Cycle

  • This year's economic downturn is different from a normal cycle.
  • It was caused by an external factor (the pandemic) rather than economic weakness.
INSIGHT

The Need for Further Assistance

  • The economic recovery depends on government support.
  • Without further aid, businesses and individuals face hardship.
INSIGHT

The Power of Interest Rates

  • Low interest rates have significantly influenced the market rally.
  • They make financing more attractive, boost present value, and lower demanded returns.
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