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Billionaire investor Howard Marks warns investors should expect the lowest returns in history and the market is vulnerable to ‘negative surprises’

Billionaire investor Howard Marks warns investors should expect the lowest returns in history and the market is vulnerable to ‘negative surprises’

Howard marks


  • In a memo released Tuesday, billionaire investor Howard Marks warned investors to expect the “lowest prospective returns in history.” 
  • The Oaktree Capital Management co-founder said he’s been forecasting low returns for the last few years, but when the pandemic caused the Fed to move interest rates lower, expected returns lowered as well. 
  • Marks listed an array of reasons interest rates lowered returns, ranging from their stimulative effect to the reduction in the risk-free rate. 
  • “In my view, when uncertainty is high, asset prices should be low, creating high prospective returns that are compensatory,” Marks said. “But because the Fed has set rates so low, returns are just the opposite.”

Billionaire investor Howard Marks warned investors in his latest memo to expect the lowest returns in history, and said that the market is vulnerable to “negative surprises.” 

“In my view, the low interest rates represent the dominant characteristic of the current financial environment, creating the dominant consideration for investors: the lowest prospective returns in history,” the co-founder and co-chairman of Oaktree Capital Management wrote. 

In his memo titled “Coming Into Focus” released Tuesday, he said that for years he has been describing a vulnerable investment environment with the “lowest prospective returns ever,” pro-risk behavior from investors hunting for high returns, excessive asset prices, and an unusually high level of uncertainty.

Read more: MORGAN STANLEY: Buy these 44 cheap stocks poised to surge as the economy continues to recover and reopening expands.

When the coronavirus pandemic prompted the Federal Reserve to lower interest rates, a policy  move Marks viewed as necessary, expected returns lowered even more, he said. Marks listed an array of reasons interest rates lowered returns, ranging from their stimulative effect to the reduction in the risk-free rate. 

“After a brief foray into bargain-land in March,

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U.S. Cities With Highest and Lowest Rates of Uninsured Residents | Cities

U.S. Cities With Highest and Lowest Rates of Uninsured Residents | Cities

With ample job losses since the start of 2020, more Americans are uninsured than in recent memory. Being without health insurance takes on new meaning during the coronavirus pandemic, leaving many Americans more vulnerable than before. According to a report by WalletHub, a personal finance website, nine of the top 10 cities with the highest rates of uninsured residents are in Texas.

The study compared overall insurance rates of 548 U.S. cities from 2019 census data, measuring within the “city proper,” and excluding greater metro areas. Health insurance rates by age, ethnicity and income were also measured.

Washington, D.C., ranked first for large cities with the lowest uninsured rates, with less than 4% of adults being uninsured, followed by Seattle, San Francisco, Boston and Honolulu. Houston topped the other end of the list for highest uninsured rates among large cities, with an uninsured rate of more than 28%.

Here are the 10 cities with the highest uninsured rates according to WalletHub:

  1. Houston, TX
  2. Passaic, NJ
  3. McAllen, TX
  4. Garland, TX
  5. Pasadena, TX
  6. Laredo, TX
  7. Edinburg, TX
  8. Mission, TX
  9. Brownsville, TX
  10. Pharr, TX

Here are the 10 cities with the lowest uninsured rates according to WalletHub:

  1. Newton, MA
  2. Cambridge, MA
  3. Quincy, MA
  4. Plymouth, MN
  5. Fremont, CA
  6. Ellicott City, MD
  7. Union City, CA
  8. Alameda, CA
  9. Naperville, IL
  10. Pleasanton, CA

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