Howard Marks, co-founder of Oaktree Capital Management, expressed caution regarding the current investment environment during a discussion at the Capital Markets Industry Conference. He emphasized that the full impact of artificial intelligence on industries and markets is being underestimated by many investors. Marks warned that while AI presents transformative potential, its long-term effects on business models, labor dynamics, and economic productivity remain uncertain and could lead to unexpected disruptions.
He stressed that Oaktree will maintain a disciplined and cautious approach, prioritizing risk management over aggressive positioning. The firm continues to focus on thorough analysis and downside protection, particularly in light of evolving technological shifts. Marks advised investors to avoid overconfidence in short-term trends and instead prepare for a range of possible outcomes as AI integration deepens across sectors.