Howard Marks Sees Third Sea Change Underway in Markets

Howard Marks discusses his insights on economic transformations over the past decades, focusing on three major sea changes. He highlights the shift from a low return to a full return world, emphasizing the challenges and opportunities in the current economic climate. Marks explains the impact of low interest rates and quantitative easing post-2009, and the recent shift towards a more challenging environment due to inflation and rising rates. He predicts a future with moderate interest rates and capital availability, marking a return to more normal economic conditions.

What implications does Howard Marks suggest the current economic conditions have for businesses with poor models?

In what ways does Howard Marks believe the current economic environment differs from the previous 14 years?