Howard Marks: Lessons Learned from the Oil Crash

From a brand new memo by Howard Marks (Oaktree) – his takeaways from the latest boom/bust on everyone’s radar and how we’ve reacted to it:

In part the emotional reaction to negative developments is the product of surprise and disillusionment. Part of this may stem from investors’ inability to understand the “fault lines” that run through their portfolios. Investors knew changes in oil prices would affect oil companies, oil services companies, airlines and autos. But they may not have anticipated the effects on currencies, emerging markets and below-investment grade credit broadly. Among other things, they rarely understand that capital withdrawals and the resulting need for liquidity can lead to urgent selling of assets that are completely unrelated to oil. People often fail to perceive that these fault lines exist, and that contagion can reach as far as it does. And then, when that happens, investors turn out to be unprepared, both intellectually and emotionally.

Run, don’t walk, to read the whole thing:

The lessons of oil (Oaktree)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Best Trading And Investing Articles - December commented on Dec 26

    […] I could share articles from The Reformed Broker all day long, but here are my two picks for December: Asset Managers are from Mars, Asset Owners are from Venus. But don’t miss the link to the rest of the article – it is a great read! And in the second article, Howard Mark’s shares lessons learned from the oil crash. […]

  2. w88 commented on Sep 20

    … [Trackback]

    […] Information to that Topic: […]

  3. bitcoin era online commented on Oct 02

    … [Trackback]

    […] Read More Information here on that Topic: […]

  4. dumps shop online commented on Oct 31

    … [Trackback]

    […] Find More on on that Topic: […]

  5. repliki zegarków omega commented on Nov 26

    … [Trackback]

    […] Here you can find 57055 more Info on that Topic: […]

  6. td easy login commented on Dec 04

    … [Trackback]

    […] Read More on that Topic: […]

  7. 안전놀이터 commented on Dec 25

    … [Trackback]

    […] Find More on on that Topic: […]

  8. cats having fun commented on Dec 31

    … [Trackback]

    […] Find More here to that Topic: […]

  9. reloj hublot replica commented on Jan 22

    … [Trackback]

    […] Find More Information here to that Topic: […]