Three decades after Alan Greenspan warned of “irrational exuberance,” Howard Marks says one half of that phrase is beyond dispute. “There’s no question about the fact that we have exuberance,” the Oaktree Capital co-chairman said.
“The question is, is today’s exuberance irrational?”
Marks, a lifelong value investor, argues no one can answer definitively. Nobody, he says, has told him exactly what AI will be able to do, when, for whom, or how much profit it’ll produce.
Artificial intelligence, in his view, is “a concept” whose parameters can’t be defined—likely “the most powerful force any of us have ever seen,” yet the least specifiable.
Elevated But Not Expensive
