Low Rates Corrupt Investing, Billionaire Investor Howard Marks Says

• Ultra-low interest rates encourage bad investing habits, Howard Marks wrote in an Oaktree memo.
• Low rates induce bad investments and discourage economic activity, Marks said. 
• Instead, the Fed should pursue “natural” interest rates, which are optimal for capital allocation.

A return to low interest rates that characterized decade and a half between the Great Financial Crisis and the pandemic could usher in a return of damaging investment behavior, How