Oaktree Capital's Howard Marks: Valuations right now are high, but not crazy

Core Insights - Current market sentiment shows high valuations and enthusiasm around technology, particularly AI, but these valuations are not deemed excessive [1][2] - The absence of psychological excess suggests that the current market situation does not qualify as a bubble, despite comparisons to the dotcom era [4][5] Valuation Perspectives - The S&P 500 is currently considered expensive, with a PE ratio around 24 compared to a historical average of 16 [10] - Optimism in the market is supported by the presence of better companies with market dominance and growth potential, justifying higher multiples [11][12] Value Investing - Value investing should be approached with open-mindedness, distinguishing between small V (intrinsic worth) and big V (strict rules) [6][7] - In the context of AI and new technologies, traditional value assessments may be challenging, as future potential cannot easily be discounted to present value [8][9] Market Sentiment and Historical Context - The phrase "this time it's different" often accompanies market bubbles, raising concerns about the sustainability of current valuations [13]