Marks describes his first viral moment when a 1990s memo reached Russia within hours unexpectedly.
“I'll never forget the time in the late nineties when I put out a memo, and within an hour or two, I had a, response back from somebody in Russia.”
Marks recalls Nifty Fifty PE ratios were sixty to ninety, revealing his role as research director.
“So, it was a and so that was a real disaster for the people who invested in the Nifty Fifty, which was most of the money center banks.”
“When I started in this business as a young man, 1969, in the research department at Citibank, the bank and most of the banks invested in what were called the nifty 50, which were considered to be the best and fastest growing companies in America,”
Marks lists historical technological innovations from railroads in 1860s through internet in 2000 as comparisons.
“So the technological innovations I'm talking about, let's just for a starting point, let's say the railroads back in the 1860s And then radio in the nineteen twenties, the automobile, computers in the nineteen fifties and sixties, internet in 2000.”
Marks says every prior technological bubble saw too much capital flow in, too much infrastructure built, and investors lose money.
“In every case, too much capital flowed in. I think it's fair to say too much infrastructure was built and prices were paid that were too high.”
Marks argues the current credit cycle is likely the longest in history despite pandemic interruption.
“I think the credit cycle has been very strong. It's gone on with the interruption of the pandemic, probably the longest time in history.”
Marks dates his 1969 start at Citibank research department when banks invested in Nifty Fifty stocks.
“When I started in this business as a young man, 1969, in the research department at Citibank, the bank and most of the banks invested in what were called the nifty 50, which were considered to be the best and fastest growing companies in America, Xerox, IBM, Kodak, Polaroid, Merck, Lilly, Texas Instruments, Hewlett Packard, Coca Cola, Avon, etcetera.”