'Profitable purchases appear when people panic': Howard Marks advises to wait

Oaktree Capital Management co-founder Howard Marks, famous forpredicting the collapse of the dot-com bubble in the 2000s, warned that there aren't many interesting stocks to buy right now, CNBC writes: Despite spikes in volatility, markets are still far from truly stressful levels.

"By and large, it's not a sell-off market," Marks said Monday, April 20, commenting on the current situation in the U.S. stock market. - There are very few truly profitable buys. They appear when people panic, want out and are willing to settle for an insufficient price. Today's situation can't be described that way".

Risk appetite on U.S. stock exchanges remains robust despite geopolitical turmoil, CNBC notes. U.S. stocks rose sharply last week after Iran declared the Strait of Hormuz "fully open." The S&P 500 broad market index topped the 7,100-point mark for the first time, while the Nasdaq Composite technology sector index posted 13 consecutive sessions of gains, the longest such streak since 1992. Over the weekend, however, tensions between the U.S. and Iran escalated, traffic on the Strait of Hormuz was again interrupted, and stocks fell in price on Monday while oil rose. However, traders appear to be betting that the two countries will eventually reach a compromise, CNBC said. It is still difficult for them to fully put the worst-case scenario of the Persian Gulf war into quotations, given that stocks have bounced back almost from correction levels and are back to all-time highs, the channel explains.

Marks added that over the past few years, the balance of power in the market has shifted decisively in favor of the bulls. "Optimists, in fact, have been winning for the last 43 months," the financier emphasized.

This article was AI-translated and verified by a human editor