"I've made my whole career buying assets that other people consider uninvestable, and when you do that, you have a chance of getting a bargain," Marks said, underscoring his investment philosophy. The allure of investments in regions like China is in their perceived risk, he contended, and that sentiment is especially prevalent now as many investors are shying away from the market, which in turn can reveal great opportunities. Thus, seeking out what others discard can yield substantial returns.
Marks explained that while China is experiencing a transition phase with a growth rate of about 5%, there’s still plenty of untapped potential. He mentioned that while many investors are wary of the current situation, believing it is uninvestable, this perspective creates ‘bargain prices.’ This thinking echoes broader market behaviors where those who remain cautious may overlook valuable options nestled amidst uncertainty and risk.
"Clearly China is on the pile of things that people feel ill about, and it's on that pile that you find the bargains," he remarked, acknowledging common investor sentiments. His assertion implies that within the negative perceptions, there exists an opportunity for investment in undervalued assets. Marks emphasized the importance of discerning which opportunities to pursue without falling into the trap of overextending oneself under the guise of seeking bargains.
Regarding U.S. markets, Marks didn't harbor overly bearish views, stating, "I don't think things are crazy high now, and I don't think it's time to get out." His perspective reflects a more cultivable investment strategy by suggesting the potential for defensive positioning while still identifying compelling value, thus balancing caution with calculated optimism as the market navigates its own valuation thresholds.
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