Investment manager Howard Marks is chairman of Oaktree Capital (OAK). In an interview , Marks described the problems of debt in the world today. Marks cites Japan, whose economy failed to be reignited over the last 25 years. When Japan gave money to people, expecting them to spend it, people saved it instead. Their psychology was dominated by worry, so keeping money in the bank mattered more than spending it to help the economy. [More list articles: Why Expect More Price Swings from These 4 Biotechs]
On the S&P 500, now at a 5-year high, Marks says it is a statistical trick. The index was higher 6 years ago, and was higher 12 years ago. The time of reference changes the importance of the S&P 500’s 5-year high. Investors who had money in markets 12 years ago did not make any money.
Marks is a fan of gold. Gold is an asset that does not produce any cash flow. Without knowing how to price an ounce of gold, making any statements about what the right price is cannot be done for gold.
Business Section: Investing Ideas1. Oaktree Capital Group, LLC ( OAK): Oaktree began trading as public company last year. Shares are up significantly at around $48.80 since then. Shares dipped recently, because of an upcoming dividend payment of $1.05. Companies held by Oaktree Capital Management include: 2. SanDisk Corp. ( SNDK): .SanDisk received an upgrade from RBC recently. The firm thinks the company is worth $65 a share, up from $50. Shares are already trading close to its 52-week high. SanDisk also makes embedded flash for Apple (AAPL). The company will also be the flash supplier for Nvidia’s (NVDA) Phoenix reference design phone, which is powered by the Tegra 4. 3. Delphi Automotive PLC ( DLPH): Delphi shares pay a dividend with a yield of 1.78%. In its quarterly report, the company reported earnings of $0.90 per share, beating estimates by $0.08. Revenue declined 3.4% from last year to $3.8B. The company was added to the S&P 500 in December 2012. 4. Brookdale Senior Living Inc. ( BKD): The company reported quarterly results that missed consensus by $0.13 per share. In Q4, Brookdale lost $0.20 per share on revenue of $699.7M. The revenue is a 4.1% increase from the previous year. Kapitall's Turbo Chart:
( List compiled by Chris Lau )