Howard Marks Says Investors Should Try to Catch Falling Knives

  • Oaktree co-chairman says U.S. stock rout was a good example
  • Billionaire investor says market cycle is in its eighth inning

Howard Marks

Photographer: Brendon Thorne/Bloomberg
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Some traders say you should never try to catch a falling knife, but Howard Marks begs to differ.

That’s exactly what investors should be doing, according to the billionaire co-founder of Oaktree Capital Group LLC, who says the recent sell-off in U.S. equities was a case in point. As timing the bottom is impossible, the trick is to buy assets as they decline, before they start to appreciate, Marks said.