Browsed by
Tag: returns

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,

Read the rest
China returns to work with a stock market surge

China returns to work with a stock market surge

Chinese stocks led Asian markets higher on Monday as investors bet on a steady recovery for the world’s No 2 economy, though caution about the fate of economic stimulus negotiations in the United States kept investors wary.



a group of people standing in front of a crowd: A strong rebound in tourist numbers in China as coronavirus cases subside points to a robust economic recovery, analysts say [File: Thomas Peter/Reuters]


© A strong rebound in tourist numbers in China as coronavirus cases subside points to a robust economi…
A strong rebound in tourist numbers in China as coronavirus cases subside points to a robust economic recovery, analysts say [File: Thomas Peter/Reuters]

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8 percent to a two-and-a-half-year high, buoyed by a 2-percent gain in Chinese blue chips and a 1.5-percent rise by Hong Kong’s Hang Seng index. Japan’s Nikkei slipped 0.3 percent as investors fretted about corporate earnings there.

Loading...

Load Error

“If capital is moving on relative growth rates, then China is looking quite attractive,” said Chris Weston, head of research brokerage Pepperstone in Melbourne. Equities are cheap, yields advantageous and the outlook solid, he said.

“From a virus perspective as well, we’re seeing concerns in Europe, while China is considered a quasi-safe haven.”

China has returned from an eight-day mid-autumn festival with investors encouraged by a robust rebound in tourism and ebbing coronavirus cases.

After finding a small number of new cases, Qingdao city said on Monday it would conduct COVID-19 tests for its entire population of more than 9 million people over five days.

Elsewhere, in the US Midwest, infections are at record levels and the World Health Organization is urging fresh curbs for Europe.

Coronavirus aid plans in the US are also in disarray, with the Trump administration on Sunday calling on Congress to pass a stripped-down relief bill while talks on a more comprehensive proposal were again at an impasse.

Futures for the S&P 500 wobbled either side of flat in

Read the rest
Garland’s farmers market returns with new name, free pumpkins and kids’ activities this Saturday

Garland’s farmers market returns with new name, free pumpkins and kids’ activities this Saturday

Garland’s farmers market is re-launching on Saturday, Oct. 10, after a hiatus because of the ongoing COVID-19 pandemic.

Formerly known as the “The Urban Flea,” the market has changed its name to the “The Urban Market” ahead of Saturday’s reopening.

The pop-up market usually takes place on the second Saturday of each month.

With more than 55 vendors, the Urban Market will be held in downtown Garland and adhere to social distancing precautions.

The market starts at 9 a.m. and lasts until 4:30 p.m.

In addition to fresh produce stands, baked goods, and a birdhouse painting activity for children, the first 150 people Saturday will receive a free pumpkin.

Some vendors will also offer treats, such as caramel apples and kettle corn, as well as honey, jam and other items.

The market has partnered with several local restaurants, such as Intrinsic Smokehouse & Brewery, around the area of the downtown square.

The monthly market was first canceled for the month of July as the COVID-19 crisis resulted in restrictions on public gatherings.

How about that kisser on Dana Shasken, who owns Mockingbird Food Co. She's one of many vendors finding ways to lighten the mood during COVID times at Cowtown Farmers Market in Fort Worth.

n

We are BACK and better than ever.nJoin us Oct 10th 9-:430nPumpkin Giveaway for 1st 150 people,nFresh Produce, Bird House...

Posted by The Urban Market on Wednesday, October 7, 2020

","type":"facebook-post","version":"1.0","url":"https://www.facebook.com/TheUrbanMarketTX/posts/3299215823466044","width":552,"_id":"https://www.facebook.com/TheUrbanMarketTX/posts/3299215823466044","additional_properties":{"comments":[],"_id":1602278900429}},"referent":{"id":"https://www.facebook.com/TheUrbanMarketTX/posts/3299215823466044","service":"oembed","type":"facebook-post","provider":"https://www.facebook.com/plugins/post/oembed.json/?url=","referent_properties":{"additional_properties":{"comments":[],"_id":1602278900429}}},"counter":3},{"_id":"VXJNFSM6Z5G4TGMZ4YXEIMOY5Q","type":"text","additional_properties":{"comments":[],"inline_comments":[],"_id":1602264067600},"content":"With more than 55 vendors, the Urban Market will be held in downtown Garland and adhere to social distancing precautions.","counter":4},{"_id":"5YBGXYY54ZAWRG4DDBI3FQI3GY","type":"text","additional_properties":{"comments":[],"inline_comments":[],"_id":1602264067601},"content":"The market starts at 9 a.m. and lasts until 4:30 p.m.","counter":5},{"_id":"ZIMLEXIYOZCJDDRLJOQWB43XWY","type":"text","additional_properties":{"comments":[],"inline_comments":[],"_id":1602264067602},"content":"In addition to fresh produce stands, baked goods, and a birdhouse painting activity for children, the first … Read the rest

Could a Hotel Tax Help Save Austin’s Creative Sector? A familiar debate returns under extreme circumstances – News

Could a Hotel Tax Help Save Austin’s Creative Sector? A familiar debate returns under extreme circumstances – News

Could “iconic” venues like Antone’s become tax-funded visitor centers? (Photo by David Brendan Hall)

As City Hall continues to rifle through its coffers looking for any and all revenue that can be used to stabilize the music venues, bars, and restaurants that face imminent closure, a familiar argument has resurfaced: Why not use some of the hotel occupancy tax revenue visitors to Austin pay on their lodging?

Regular readers may be flashing back to last fall, when the same debate gripped City Hall ahead of a vote on the failed Proposition B, which would have derailed the Council-endorsed expansion of the Austin Con­ven­tion Center. The argument put forth now by local attorneys Bill Bunch and Fred Lewis is basically the same as the pitch they made then: Council, guided by legal advice from city attorneys, simply has too narrow a view of the state statutes that regulate how HOT revenue can be used.

“The law is still the same, but the world has changed with the pandemic,” Bunch told us this week. “The viability of expanding the Convention Center is out the window, and the need for spending the money to support cultural tourism and live music is undeniable and urgent.”

Currently, Austin collects 11 cents on each dollar visitors spend on hotel stays. State statutes mandate that revenue be used in ways that specifically promote the tourism, hotel, and convention industries, including limited set-asides to support cultural arts and historic preservation. Here’s how the city currently splits up HOT revenue:

• 4.5 cents goes to the Convention Center Tax Fund, which pays debt service and operating costs of the center, which does not pay for itself through event revenue.

• 2 cents goes to the Venue Project Fund, which pays off debt approved

Read the rest