Oaktree Capital Founder: S&P 500 at 23x P/E Valuation, Missing AI Boom Could Be 'Greatest Investment Opportunity'

US5000.49%
According to Guru Club, billionaire investor Howard Marks, co-founder of Oaktree Capital, warned on June 18 that investors overly cautious about market risks could miss the greatest investment opportunity in human history. Speaking on a podcast, Marks noted the S&P 500 trades at 23x price-to-earnings ratio, up 50% from the 80-year average of 16x but below the 2000 dot-com bubble's 32x. Regarding AI investments, Marks outlined a three-tier strategy: mega-cap tech companies offer lower risk with stable cash flows; vertical AI firms like Anthropic and OpenAI carry higher risk but better survival odds; early-stage startups resemble lottery tickets with high failure rates. He suggested investors choose their risk position in this spectrum and allocate a corresponding portfolio weight.
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