Another Howard Marks’ Memo – Risk Revisited
11 June, 2015
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There are 3 important factors to guide my views on asset class allocations and to sniff out some opportunities in global markets.
These 3 factors are Valuation, Volatility and Price Trends. Valuation is a good indicator of long-term returns while Price Trend is helpful for guiding my short-term view (of less than 1 year). Low volatility is a helpful indicator for above average risk-adjusted returns over the long term.