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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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G20 to say economic outlook less negative, vow to sustain, strengthen support if needed

G20 to say economic outlook less negative, vow to sustain, strengthen support if needed

BRUSSELS (Reuters) – The world’s financial leaders will say on Wednesday that the outlook for the pandemic-ravaged global economy is less negative as steps already taken are paying off, and will vow to do more if needed to support the recovery, their draft statement said.



a close up of a green building: FILE PHOTO: A man on a bicycle rides past containers at an industrial port in Tokyo


© Reuters/Kim Kyung Hoon
FILE PHOTO: A man on a bicycle rides past containers at an industrial port in Tokyo

Finance ministers and central bankers from the world’s 20 biggest economies will hold virtual meeting on Wednesday to discuss the main global economic challenges as the COVID-19 pandemic will cause a global economic contraction this year.

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“The outlook is less negative with global economic activity showing signs of recovery as our economies have been gradually reopening and the positive impacts of our significant policy actions started to materialize,” the G20 financial leaders’ draft statement, seen by Reuters, said.

“We will sustain and strengthen as necessary our policy response, considering the different stages of the crisis, to secure a stable and sustainable recovery,” it said.

The G20 financial leaders, who have clashed in the past about the international trade — a key motor of global growth — said they would not set up new barriers to it.

“We will continue to facilitate international trade, investment and to build resilience of supply chains to support growth, productivity, innovation, job creation and development,” the draft said.

(Reporting by Jan Strupczewski)

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Telecom Power Solutions Market will Showcase Negative Impact during 2020-2024 | Growing Investment in Telecommunication Networks to Boost Market Growth | Technavio

Telecom Power Solutions Market will Showcase Negative Impact during 2020-2024 | Growing Investment in Telecommunication Networks to Boost Market Growth | Technavio

LONDON–(BUSINESS WIRE)–Technavio has been monitoring the telecom power solutions market and it is poised to grow by USD 2.42 billion during 2020-2024, progressing at a CAGR of over 9% during the forecast period. The report offers an up-to-date analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.

Technavio’s in-depth research has all your needs covered as our research reports include all foreseeable market scenarios, including pre- & post-COVID-19 analysis. We offer $1000 worth of FREE customization

The market is concentrated, and the degree of concentration will accelerate during the forecast period. Alpha Technologies Ltd., Ascot Industrial Srl, Beijing Dynamic Power Co. Ltd., Cummins Inc., Delta Electronics Inc., Eaton Corp. Plc, Huawei Investment & Holding Co. Ltd., Schneider Electric SE, Vertiv Group Crop., and ZTE Corp. are some of the major market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

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Growing investment in telecommunication networks has been instrumental in driving the growth of the market. However, the growing popularity of massive MIMO and vRAN for 5G implementation might hamper the market growth.

Technavio’s custom research reports offer detailed insights on the impact of COVID-19 at an industry level, a regional level, and subsequent supply chain operations. This customized report will also help clients keep up with new product launches in direct & indirect COVID-19 related markets, upcoming vaccines and pipeline analysis, and significant developments in vendor operations and government regulations. Download a Free Sample Report on COVID-19 Impacts

Telecom Power Solutions Market 2020-2024: Segmentation

Telecom Power

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