Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Donald Trump is Scaring Investors

Stock-Markets / Stock Markets 2016 Feb 18, 2016 - 11:47 AM GMT

By: Bloomberg


Oaktree's Howard Marks spoke with Stephanie Ruhle and David Westin on Bloomberg TV's "Bloomberg <GO>" on how the presidential election and Trump are scaring investors. He also discussed his bet on Jeffrey Gundlach's upstart investment firm, DoubleLine Capital.

On how the presidential election is impacting markets, Marks said: "They're scaring the hell out of people." Of Trump he added: "Donald says, the Chinese are killing us. The Mexicans are killing us. The Japanese are killing us. But we're going to get the jobs back. And I think that people tend to believe him…The others compete to be equally fearful and dramatic."

STEPHANIE RUHLE: Howard what do you make of this recent market volatility? Is this part of a normal cycle? Or does it seem, Mohamed El-Erian has said we're in a perfect storm. That doesn't seem like a normal cycle.

HOWARD MARKS: Well Stephanie I think that volatility is normal, fits of volatility. I wrote a memo recently and I talked about my friend Sandy the airline pilot who describes his job as hours of boredom punctuated by moments of terror. And that is the description of the investor's job. And--

RUHLE:  One more time, hours of boredom interrupted by moments of terror.

MARKS:  Exactly.

RUHLE:  That's how you describe investor life?

MARKS:  Well I think that’s right. And this is one of the, you know the last six weeks in the stock market have been one of those moments of terror. But it's normal. The reasons are not quite normal. We have kind of one off. I think that people have gotten used to dealing with normal economic cycles, recession, recovery, et cetera. But we have now kind of cosmic issues that people don't have any experience dealing with and don't know how.

RUHLE:  What?

MARKS:  China, oil, rates, terrorism are just four examples.

RUHLE:  Is the fear exaggerated or punctuated by the presidential election? When you see Donald Trump up there, you know, dare I say putting fear in the US economy, really speaking in such declarative statements about the disastrous situation that we're in, does that affect the markets?

MARKS:  I can't tell you definitively because I don't have any research on that subject, but I would guess so. They're scaring the hell out of people. And Donald says, the Chinese are killing us. The Mexicans are killing us. The Japanese are killing us. But we're going to get the jobs back. And I think that people tend to believe him.

Then the others compete to be equally fearful--

RUHLE:  Dramatic.

MARKS:  And dramatic. They can't, it's very hard for them to compete with him by saying no, the latest information from the Commerce Department says it's not true. They don't want to hear that. His stuff is much more attention--

RUHLE:  Headline worthy.


RUHLE:  In 2009 you put $20 million into Jeff Gundlach's investment firm. Clearly you didn't do it because you were all LA guys, you wanted to help your neighbor.|

MARKS:  I know something.

RUHLE:  Ah, ah! There you go.

MARKS:  I'm talking about the market.

RUHLE:  That is now a billion dollar gain for you. So what did you know then that well clearly David and I didn't?


MARKS:  Well first of all we had no reason to expect that it would go as well as it did. DoubleLine which Jeff formed in late '09 has been I think probably the greatest success story for a new money manager. You know they're at $85 billion under management I believe. Here we are just six years later.

But what I did know is that I knew that Jeff reported to me in my last at TCW, my previous employer before we formed Oaktree. So I knew the man. I knew how smart he was. I knew his partner Phil Barach. I knew how, what a great team they were. And I believed that they would be successful.

RUHLE:  OK so you believed that back in 2009. Today what are you passionate about, confident in? Because clearly you want to keep this return run going.

MARKS:  I'm much more confident about the past than I am about the future.

RUHLE:  Of course, we all are.

**CREDIT: Bloomberg Television**

Copyright © 2015 Bloomberg - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Bloomberg Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in