Howard Marks, co-chairman and co-founder of Oaktree Capital Management, said U.S. equities appear costly compared with underlying fundamentals and may be entering the “early days” of a market bubble. In comments made on 20 August, Marks compared the current environment to the late-1990s bout of “irrational exuberance,” though he stopped short of predicting a near-term sell-off. Marks noted that the United States has gone 16 years without a significant correction and that valuations now look stretched. Even so, he said there is “no reason to think” an immediate downturn is coming, arguing instead that the market could continue to rise before any mean reversion takes hold. The veteran investor advised that credit markets currently offer a more defensive posture than equities, suggesting investors may want to balance portfolios accordingly.