Bloomberg Surveillance Bloomberg Surveillance TV: August 20th, 2025
15 snips
Aug 20, 2025 
In this engaging discussion, Howard Marks, Co-Chairman of Oaktree Capital, shares his expertise on value investing and risk management, while Eric Freedman, US Bank CIO, offers fresh insights into market trends. They explore the psychological factors behind asset price resilience and caution about potential corrections. The conversation also highlights the unique pressures on U.S. investments amidst inflation, emphasizing consumer challenges and the impact of Fed policies. Their balanced strategies urge investors to adapt to shifting economic dynamics.
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Reversion To The Mean Drives Market Risk
- Investors assume current conditions will persist, which is their biggest mistake.
- Markets tend to revert to the mean, so elevated optimism creates bubble risk.
1997 Echoes But Not A Repeat
- The late-1990s tech run is the closest recent analogue but markets can keep rising even after exuberance shows.
- Being early in a cycle doesn't mean valuations are safe.
Broad Valuations Are The Bigger Risk
- Exceptional tech companies justify high valuations but broad high valuations across average firms are more worrying.
- The risk is not just a few frothy winners but many overvalued ordinary companies.