Billionaire Investor Howard Marks Believes Now Is The Time To Buy (But Not Too Much)

Oaktree Capital co-chairman Howard Marks believes that investors can do some buying now as “things have gotten cheap enough.” On March 31, the billionaire investor told CNBC: “I personally think that securities are low enough to buy a little. Somebody said to me, ‘is this the time to buy?’ I say no, ‘this is a time to buy.’”

Oaktree Capital, for instance, has snapped up high-yield US bonds, as yields have soared from 3.5% six weeks or two months ago (excluding energy), to around 10% today, Marks said to CNBC’s Tanvir Gill.

Striking a nonetheless cautious tone, the investing guru continued: “There’s no argument for spending all your money now, but there’s also no argument for not spending any of your money now. I would do something moderate, in between.”

Unsurprisingly, Marks reminded investors of the significant uncertainty caused by the Covid-19 pandemic. “I am worried about what we don’t know about the disease and the economic impact… Nobody knows how bad this disease will get, how bad the economic ramifications will be, or whether government programs will save the day. You just can’t have that answer.”

The Dow Jones has just recorded a shocking 410-point decline for the first quarter, its worst performance in the last 124 years. And global stocks have continued to fall on April 1 after President Trump warned that the coronavirus pandemic will see America experience a “very, very painful two weeks”.

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Harriet Lefton
Harriet Lefton, originally from the UK, began her career as a journalist specialising in the niche world of metal markets. She graduated from the University of Cambridge before becoming a qualified UK lawyer. Now she has turned her attention to the world of financial blogging, covering US stocks, analysts and all manner of things finance-related.

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