The Next Stage of the Credit Cycle with Oaktree’s Poli
Odd Lots
00:00
Avoid Losses to Succeed
Successful investing requires a strategic difference between stock and credit investing; stock investing is about selecting winners, while credit investing focuses on avoiding losses. Drawing analogies, stocks are compared to extraordinary pizza that can be both remarkable and disappointing, whereas credit is likened to steak, where consistency and precision are paramount. The recent aggressive rate hike cycle did not lead to the expected recession, resulting in narrow credit spreads. This phenomenon indicates that investors should be cautious yet confident, as maintaining tight credit spreads might reflect the stability of asset valuations despite rising interest rates.
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