Oaktree’s Howard Marks: Stocks are ‘in the early days’ of a bubble

[Bubble]
Petrovich9

The stock market has shown early stages of a bubble, according to Oaktree Capital Management LP co-founder Howard Marks.

During a Bloomberg TV interview, Marks said that stocks are “in the early days” of a bubble, with expensive valuations and a “revision to the mean [that] is very likely.”

He said, however, that the critical point for a serious correction – which investors last saw in the late 1990s with the fall of tech stocks – has not arrived yet. “I’m certainly not ringing the alarm bells.”

He also said that technology stocks (XLK [https://seekingalpha.com/symbol/XLK]), (IYW [https://seekingalpha.com/symbol/IYW]), (ARTY [https://seekingalpha.com/symbol/ARTY]) are “quite highly valued” compared to history.

“This is a time to put a little more defense into your portfolio, and investing in credit as opposed to equities is one way to do it,” he said.

Lastly, he reiterated that the U.S. is still the best region to invest and compared it to a “great car at a high price.” He said so, despite adding that the fundamental investment environment has deteriorated “a little bit.”

MORE ON THE MARKET:

* The Market Is Rotating Again [https://seekingalpha.com/article/4815308-the-market-is-rotating-again]
* Jackson Hole: Will Powell Finally Respond To Trump's Provocations? [https://seekingalpha.com/article/4815305-jackson-hole-will-powell-finally-respond-to-trumps-provocations]
* The Outlook For S&P 500 Dividends In August 2025 [https://seekingalpha.com/article/4815198-outlook-sp500-dividends-august-2025]
* Skechers, Tesla, and DoorDash among hedge funds’ new favorite long positions – GS [https://seekingalpha.com/news/4487592-skechers-tesla-and-doordash-among-hedge-funds-new-favorite-long-positions-gs]
* Stocks with the largest increases in short interest so far in 3Q – Goldman Sachs [https://seekingalpha.com/news/4487531-stocks-with-the-largest-increases-in-short-interest-so-far-in-3q-goldman-sachs]