Despite continued volatility, the market remains far from distressed, Howard Marks said, warning investors looking for bargains could be disappointed. The co-founder and co-chairman of Oaktree Capital Management, who famously predicted the dot-com bubble, said the current environment reflects an ongoing “tug of war” between bulls and bears, with optimism largely prevailing starting in the second half of 2022. That dynamic forces asset prices to rise and opportunities to remain scarce. “For the most part, this is not a for-sale market,” Marks said Monday on CNBC’s “Squawk Box.” “There are very few bargains. Bargains happen when people panic, want to get out of there, and are willing to take a bad price. This is not representative of today.” .SPX YTD Mountain S&P 500 Year-to-date Index His remarks came as risk appetite remains resilient in the face of geopolitical shocks. U.S. stocks soared last week after Iran declared the Strait of Hormuz “fully open” following the announcement of a ceasefire between Israel and Lebanon. The S&P 500 index crossed the 7,100 mark for the first time, and the Nasdaq Composite Index achieved 13 consecutive wins, its longest winning streak since 1992. Tensions between the US and Iran escalated over the weekend, but traders appear to expect the two countries to eventually reach a compromise, adding to the market’s upward momentum. Marks added that the balance of power has shifted decisively in favor of the bulls over the past few years. “The optimists have basically been winning over the past 43 months,” Marks said. Around October 2022, the pessimists began to take a more constructive turn, and “they’ve basically been winning ever since.”
