Howard Marks

two and a half to three years.

So remember, I said we're in the early days.

We're not at a critical, at a nutty valuation.

I'm certainly not ringing the alarm bells, as the quote that you had on the screen said.

No reason to think there'll be a correction soon.

But the point is that things are expensive.

They may go on to become more expensive, but the fact that they're expensive should not be lost.

A tech contributes to the aura that surrounds the markets.

And a lot of people have been citing the fact that the so-called magnificent seven stocks like Amazon and Alphabet have been contributing disproportionately to the rise.

And they're responsible for more than seven stocks.

Their dollar gains have increased.

been responsible for more than half of all the gains in the 500 stocks in the S&P, seven out of 500.

But they're great companies.

They're at high valuations.

I think that I can't say those valuations are excessive.

The other 493 stocks are quite highly valued, not as highly as the Magnetism 7, but nobody says they're the same quality company, quite highly valued relative to history.

And it is the fact that high valuations are being applied to more average companies that I think is more alarming than the fact that exceptional valuations are being applied to exceptional companies.

Well, you know, as John Stuart Mill said in, I believe it was 1859, you have to know all the sides of the story to understand whether your side holds water.

And I cite the bull case there for why the market isn't overvalued.

I think that's part of the job.