HYZD - Latest Memo From Howard Marks: Coming Into Focus

• This down-cycle cannot be fully cured merely through the application of economic stimulus. Rather, the root cause has to be repaired, and that means the disease has to be brought under control.
• The economic recovery everyone's counting on is not an independent event, unaffected by developments. Rather, it is highly dependent on progress against the disease but also on the continuation of fiscal expenditures in the interim.
• Today, it seems to me that most assets are offering expected returns that are fair relative to their expected risk, relative to everything else. But the prospective returns on everything are about the lowest they've ever been.
• In my view, the low interest rates represent the dominant characteristic of the current financial environment, creating the dominant consideration for investors: the lowest prospective returns in history.

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