The podcast discusses current market valuations, particularly concerning AI and technology stocks. Howard Marks acknowledges high valuations and enthusiasm for AI but states he doesn't detect the "mania" characteristic of a bubble, differentiating it from the dot-com era. He explores the concept of "value investing," distinguishing between a rigid "big V" approach and a more flexible "small v" approach focused on intrinsic worth. Marks notes that while the S&P 500 appears expensive based on historical P/E ratios, the quality and growth potential of its constituent companies might justify higher multiples, acknowledging this perspective as a "This Time It's Different" argument, which often precedes bubbles.
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