Those 'out of favor' investments include retail and office real estate, as well as stocks in the entertainment and hospitality sectors, said Marks, co-founder and co-chairman of Oaktree Capital Management.
Victor J. Blue | Bloomberg | Getty Images With yields on U.S. Treasurys close to zero, other asset classes look "very attractive" in comparison — but returns may still be lackluster, he said. "You get to a point where everything is selling at a fair price relative to the very low interest rate but still at very low prospects of returns.
And I think that's where we are," he said. "So where are the opportunities today? The opportunities are in the things that are out of favor." Those "out of favor" assets include retail and office real estate, as well as stocks in the entertainment and hospitality sectors, said Marks. "I think we've developed a real dichotomy between the things that are obviously successful but expensive, and the things that look low-priced but are challenged in terms of business. And big money will be made by buying the latter which works in my opinion," he added. He noted that until the recent sell-off in U.S. markets, the tech sector was favored by investors as companies saw improved business during theWhile some of the tech stocks now look expensive, Marks said they could "still make people a lot of money" in the long run. The key is to identify which companies would be successful over the longer term to validate investors' expectations of them, he added., Marks said many investors are focused on short-term fluctuations that may not mean much. He pointed out that even though market fluctuations have been "unusually strong" this year, the recent move downward in stock prices comes after a roughly 60% climb since the trough in March."Remember that the market went up roughly 60% from the low of March 23 to the other day, and now it's given back 6% so it's still way off from the bottom, it's still in the vicinity of what was an all-time high set in February," he said. "Maybe things went too well and a few people decided that stocks should be a little lower so they sold them off especially in tech," he added."Markets seem to be getting more volatile ... everybody gets a hair trigger and is looking at the short-term performance as if that means anything," he said. "What really means something is whether you hold stocks for the long run and whether you hold good ones."
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Could you build a better TikTok?The short-video app offers its putative American buyers a chance to rethink social-media business and governance models
Read more »
Here’s an overlooked way to play the ‘stuck-at-home’ trend in the stock marketWhat stocks should you buy to take advantage of the work-from-home trend? Forget Zoom and tech and think DIY home improvement companies like Home Depot and Lowe's, philipvandoorn writes. $HD $LOW
Read more »
There's a 'huge amount of money' returning to China in the IPO space, investor saysAs tensions mount between Washington and Beijing ahead of the U.S. presidential elections in November, Stonehorn Global Partners' Sam Le Cornu sees more Chinese firms returning home.
Read more »
Dow plummets 632 points as tech-sector carnage spoils another day | Markets InsiderSpencer Platt/Getty Images US stocks sank on Tuesday as investors sold-off tech giants and bought safe-haven assets.The tech-heavy Nasdaq comp...
Read more »
Legendary investor Byron Wien says next 'real opportunities' in market are transportation and energy as tech falters | Markets InsiderBrendan McDermid/Reuters Legendary investor Byron Wien told CNBC on Tuesday the next 'real opportunities' in the market are in distressed area...
Read more »
Jeremy D. Howard Joins CBS Comedy Pilot ‘The Big Bad Wolfes’ From ‘Will & Grace’ CreatorsEXCLUSIVE: Jeremy D. Howard (Black Lady Sketch Show) is set as a series regular opposite Julie Bowen and Stephanie Koenig in The Big Bad Wolfes (fka Please Hold for Frankie Wolfe), CBS’ multi-camer…
Read more »