Decision-making on Markets in general: Thoughts from Howard Marks

Decision-making on Markets in general: Thoughts from Howard Marks

  1. Invest as you always have and expect your historic returns.
  2. Invest as you always have and settle for today’s low returns.
  3. Reduce risk to prepare for a correction and accept still-lower returns.
  4. Go to cash at a near-zero return and wait for a better environment.
  5. Increase risk in pursuit of higher returns.
  6. 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.