Oaktree Capital's Marks warns: Signs of a bubble are emerging in the U.S. stock market, but the adjustment threshold has not yet been reached

Howard Marks, co-founder of Oak Tree Capital, warned that the U.S. stock market is in the early stages of a bubble, although the critical point for a correction has not yet arrived. He pointed out that market valuations are high, and investors are 16 years removed from the last severe market correction. He mentioned that the current market conditions are reminiscent of the tech stock frenzy at the end of the 1990s and emphasized the possibility of mean reversion. Marks suggested increasing defensive allocations in investment portfolios, believing that investment-grade credit is more defensive compared to stocks