An interesting article on Fixed Income from Oaktree (Howard Marks) - at M* website

andrei

http://news.morningstar.com/articlenet/SubmissionsArticle.aspx?submissionid=162155.xml

Conclusions:

The good news is that today’s investors are painfully aware of the many uncertainties. The bad news is that, regardless, they’re being forced by the low interest rates to bear substantial risk at returns that have been bid down. Their scramble for return has brought elements of pre-crisis behavior very much back to life.
Please note that my comments are directed more at fixed income securities than equities. Fixed income is the subject of investors’ ardor today, since it’s there that investors are looking for the income they need. Equities are still being disrespected, and equity allocations reduced. Thus they are not being lifted by comparable income-driven buying.

In 2004, as cited above, I stated the following conclusion: “There are times for aggressiveness. I think this is a time for caution.” Here as 2013 begins, I have only one word to add: ditto.
The greatest of all investment adages states that “what the wise man does in the beginning, the fool does in the end.” The wise man invested aggressively in late 2008 and early 2009. I believe only the fool is doing so now. Today, in place of aggressiveness, the challenging search for return should incorporate goodly doses of risk control, caution, discipline and selectivity.

catch22

Howdy andrei,

I had just read this a bit earlier from another site.

He/you note:

Here as 2013 begins, I have only one word to add: ditto.
The greatest of all investment adages states that “what the wise man does in the beginning, the fool does in the end.” The wise man invested aggressively in late 2008 and early 2009. I believe only the fool is doing so now. Today, in place of aggressiveness, the challenging search for return should incorporate goodly doses of risk control, caution, discipline and selectivity.

I presume with this, he is still taking about fixed income investments; as it is most tempting to find the current path of equities, although tripping all kinds of upward moment circuit breakers; which causes concern for buying much of anything named equity right not/at these prices, and yet knowing that the current momentum may travel for a few more months.

A real head scratcher for this house, today.

Take care,
Catch

davfor

The above link didn't work for me....maybe because it related to printing the article. Here is another M* link that got me to it:

http://news.morningstar.com/articlenet/SubmissionsArticle.aspx?submissionid=162155.xml

andrei

Thanks, I replaced my link:)