Howard Marks Urges Investors to Hold Stocks Despite Debt

Howard Marks, the billionaire founder of Oaktree Capital, advised investors against selling their stocks despite growing concerns over rising United States national debt and fiscal mismanagement. In a memo published Tuesday, Marks argued that the current fiscal burden is a problem of government management and the potential stability of the U.S. dollar rather than a reflection of the strength of U.S. companies or the stock market.

Marks noted that moving funds into dollar-denominated assets, such as banks or bonds, does not shield investors from the risk of the dollar losing purchasing power. To hedge against fiscal deterioration, he suggested considering non-financial assets like real estate and gold, or assets denominated in other currencies.

While recommending these alternatives, Marks cautioned that such assets carry their own risks and often lack the growth prospects offered by leading U.S. companies.