Nobody knows what will happen

[cyclone]

Nobody knows what will happen

CHRISTOPH GISIGER AND MARK DITTLI
SEP 29TH 2017 – 18:42

Howard Marks, Co-Chairman of the US investment firm Oaktree Capital warns that valuations in the financial markets are uncomfortably high and that investors are being too complacent.

What risks do investors have to consider in this environment?
As an investor, you have to deal with two risks: The risk of losing money, and the risk of missing out on opportunities. It’s the job of a good investor to balance the two: You invest, but with caution. You should certainly have less risk exposure today than you would have had five or seven years ago. I think it’s better to turn cautious too soon rather than too late. Most people can’t think of what might cause trouble anytime soon. It’s precisely when people can’t see what it is that could make things turn down that risk is the highest. It could be an economic slowdown, rising interest rates, the effect of central bank tightening, or geopolitical events. Or it could be «something else.» It’s always the things we don’t know about that really bite us in the end.

More details in https://www.fuw.ch/article/nobody-knows-...ll-happen/