Value investing master Howard Marks' latest perspective: You should abandon decades-old assessment views.

As globalization fades and the world enters an era of fragmentation, changing trade policies, rising tariffs and inflationary pressures are increasing, investors need to recalibrate their investment decisions. (Synopsis: Full text of BlackRock's CEO investor letter: Bitcoin is eating away at the US dollar reserve status, tokenization will lead the capital revolution) (Background supplement: The bull market is not dead? Investors don't die? Crypto KOLs recommend 10 market top "key signals") Recently, investment legend Howard Marks shared his insights into the current investment climate on a Bloomberg show. Instead of trying to spread fear or predict the short-term movement of the market, he focused on how Liberation Day redefines the way we think about investing. Max pointed out that the world is not coming to an end, but the rules of investment are fundamentally changing. Over the past few decades, investors have benefited from the tailwinds of globalization: open trade, efficient supply chains, and low commodity prices. However, this tailwind is fading. Instead, we are entering an era of fragmentation. Countries are revisiting trade policies, tariffs are rising, and domestic production is prioritized, even if it means higher costs. This shift has had a profound impact on the economy, inflation and asset prices. Trade is not just a political issue, it is an engine of the economy. When countries benefit from each other through specialization and efficient trade, everyone benefits: lower prices, higher productivity, and wider access to goods. However, reversing this trend comes at a cost. One of the most underestimated effects of globalization is its role in curbing inflation. With the expansion suite of global trade, the cost of many goods has dropped significantly, which benefits central banks, consumers and investors alike. But when trade shrinks, cost pressures rise. Domestic manufacturing typically means higher wages, higher input costs, and lower efficiency. That's not a bad thing, but it's inflationary and changes the assumptions we've relied on for decades. So, how should investors respond? Max stressed that we need to rethink the context of every investment decision. For example, if inflation is structurally higher, then valuation multiples may need to be adjusted downward, the cost of capital rises, and discount rates become important again. Instead of saying "sell everything," he advises investors to recalibrate their investment strategies and not rely on old models in the new world. It is assumed that mean regression decreases and institutional change increases, while remaining cautious about the risks taken. Another key point: in such an environment, prediction does not work. We cannot reliably predict what policies, partnerships, or power dynamics will look like in 6 to 12 months. This is not a flaw, but a reality. If we can't predict accurately, then what can we do? Max believes that we can rely on probability, positioning, and price for anchoring. Instead of trying to predict, focus on whether the asset is reasonably priced relative to this new context and ask yourself, "Is this reasonable?" Discipline is especially important when uncertainty is high. Marks advises investors to view volatility as a lens through which opportunities are found, not a reason to shy away. The best opportunities often come when others are hesitant, but you have to be logical, not emotional. Also, don't confuse falling prices with rising risks. The market is discounted, it's part of the cycle. The key question is not "Will it fall lower?" It's "Is the risk I taking being fairly rewarded?" Despite these changes, Max still sees the U.S. as a strong place to invest in. It has deep capital markets, world-class innovation, and the rule of law – evolving, but still superior to most alternatives. However, the label "Auto Best" is no longer applicable. What is needed now is judgment, not taking it for granted. Howard Marks did not give specific market forecasts, he provided perspective. This moment requires more than just a reaction, but a reassessment of how we invest – and why. The world is changing, and smart investors will adjust with it. Related stories Coin Trustee and KGI "Swipe to Invest in Cryptocurrency", the first credit card points can be exchanged for BTC, ETH, USDT Bitcoin vs Gold: Who is the better investment choice in 2025? Binance launches the second round of "voting listing", what investment strategies can be found by observing the results of the first round? "The latest view of value investing guru Howard Marks: You should leave behind decades of old evaluation vision" This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".