Howard Marks warned that investors hunting for bargains may be disappointed, saying markets are still far from distressed levels despite bouts of volatility. The co-founder and co-chairman of Oaktree Capital Management, who famously foresaw the dot-com bubble, said the current environment reflects an ongoing “tug of war” between bullish and bearish forces, with optimism largely dominating since late 2022. That dynamic has left asset prices elevated and opportunities scarce. “For the most part, this is not a market that’s on sale,” Marks said Monday on CNBC’s ” Squawk Box .” “There are very few bargains. Bargains come when people panic, want to get out, and are willing to take an inadequate price. That doesn’t describe today.” .SPX YTD mountain S & P 500 year to date His remarks come as risk appetite has remained resilient in the face of geopolitical shocks. Last week, U.S. stocks surged after Iran declared the Strait of Hormuz “completely open” following a ceasefire announcement between Israel and Lebanon. The S & P 500 crossed the 7,100 threshold for the first time, while the Nasdaq Composite notched its 13th straight advance and longest winning streak since 1992. Tensions between the U.S. and Iran escalated over the weekend, but traders appear to be betting the two countries will ultimately reach a compromise, reinforcing the market’s upward momentum. Marks added that the balance of power has tilted decisively toward bulls over the past several years. “The optimist has basically been winning for the last 43 months,” Marks said. Around October 2022, pessimists began turning more constructive, and “they’ve basically won since then.”
‘Bargains come when people panic’
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