Howard Marks Memo: There They Go Again … Again

Howard Marks, co-founder and co-chairman of distressed investing heavyweight Oaktree Capital, published his latest memo this week.

Marks advises caution in the current market environment. He is concerned about valuations, sentiment and excesses in some market segments. These are his key points on equity valuations, complacency, FANG stocks, credit spreads and yields and the private equity and technology investing environments:

He also calls out the enormous SoftBank Vision Fund ($93 billion) which is levered through 7% preferred stock. 

Marks cautioned investors before:
in 2000, when he wrote:
in 2005, with: There They Go Again
in 2007, when he published: The Race to the Bottom
and most recently in 2011, with: How Quickly They Forget

Marks clearly likes to err on the side of caution (and made a career investing in distressed, rather than growth investments) and has historically been early to turn cautious on the markets.

You can read the full memo here:

Howard Marks Memo: There They Go Again … Again

This is how he describes today's investing environment: