- Invest as you always have and expect your historic returns.
- Invest as you always have and settle for today’s low returns.
- Reduce risk to prepare for a correction and accept still-lower returns.
- Go to cash at a near-zero return and wait for a better environment.
- Increase risk in pursuit of higher returns.
- Put more into special niches and special investment managers.
These are the Howard Marks options, outlined last year. (I was reading his latest memo quite recently). Marks rules out 1, 4 and 5. Suggests that investors should opt for a mix of 2, 3, and 6.
