Seeking Alpha

Marks: Parallels with 2007 starting to form

"The Race Is On," says Howard Marks (OAK +1.6%) in his latest memo as he's starting to see some of the same behavior which had him so worried in early 2007, particularly the heavy use of debt to fund buybacks and dividends, and the "full flower" return of covenant-lite and paid-in-kind debt issuance

Still, he says, with relatively subdued buyout action and derivatives off the front page, activity isn't nearly as bubbly yet as the 2007 era. He doesn't think it's yet time to bail out of the markets.

It's my belief that when investors take on added risks - whether because of increased optimism or because they're coerced to do so (as now) - they often forget to apply the caution they should ... risk aversion is the essential element in sane markets."

From other sites
Comments (1)
  • Robert Duval
    , contributor
    Comments (7764) | Send Message
    Man Bubble calling is popular!
    29 Nov 2013, 12:41 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs