Howard Marks Is Humbled By Rally. Sort Of. But Not Really.

Howard Marks Is Humbled By Rally. Sort Of. But Not Really.

Howard Marks seems to have finally made something that sounds vaguely like peace with the rally in risk assets from the March panic lows. Judging by the cadence he adopted across more than a half-dozen memos penned during the crisis, coming to terms with the situation was not always easy. But, in his latest memo, out Thursday, Marks's tone is measured. He has returned to form, which is a welcome development. It was touch and go there for a while. As late as May 18, Howard was still going on ab
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5 thoughts on “Howard Marks Is Humbled By Rally. Sort Of. But Not Really.

  1. He is late to the party but he made it.
    Zombie companies are still employers.
    Time for Capitalists to admit a fail. No Zombies and the Nation would socialize quickly in some form. In essence Capitalism itself may need an epiphany. Marks still needs his mind to wander further. Some Zombies may find a second life. People like to work and make things work.

  2. It always strikes me as ironic when lower class people are painted as misusing government funds. Where it’s buying stocks, buying video games, buying shoes, buying weed, saving the money. The narrative is always, those who are not well off are too stupid to spend government funds appropriately. What this narrative always ignores is that the purpose and intent of this disbursement was stimulus. Does it matter where they are putting the money as long as it’s not in their mattress? If you are buying things, you are stimulating the economy. If you are buying stocks you are stimulating the stock market. If you eat out you are stimulating food service. If you are saving then you are stimulating bank’s ability to loan.

    Conversely, if big corporations take stimulus and spend it on themselves, well they just HAD to do that. Bonuses for execs who clearly screwed up? Well how else will you retain that “talent”? Share buybacks? Well they are incentivising investors. Laying off a quarter of the workforce? Well that just makes sense.

    The point is, we really need to stop this ridiculous class bias that we seem to exhibit in the US. All people are fallible regardless of their class status. Rich and poor people can misspend government money alike. And in the same token, rich and poor people can spend government funds responsibly just as alike.

    1. Valid point

      There is a sizeable pool of humans who derive their sense of self worth from implying their own moral high ground by chastising another

      Hence the phrase, holier than thou

    2. Yeah, I witnessed this with my father-in-law yesterday as I overheard him on the phone complaining about how people making over $x amount wouldn’t receive a stimulus check. It was the same old story about how he shouldn’t be punished for his success and that this country was founded on capitalism and how most wealthy people are self-made.

      It clearly hasn’t occurred to him that the Fed has backstopped his portfolio to the tune of seven figures. I think I need to send him a link to this website to disavow him of these notions that he is somehow the victim in all this and that he is not responsible for personally writing a check for the stimulus.

  3. Working from home with two computers on the desk and time to study the stock market may mean that not all of these new stock market participants are gambling. Could be simply be new risk-takers or is that The purview of the elite. This week in the markets is risky and Pompeo’s china agreement waylays some of that risk.

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