Investors are getting comfortable with risk approaching pre-crisis levels, but stocks do not appear to be in a bubble, according to investor Howard Marks.
In the latest of his widely followed "Oaktree memos," Marks sounds numerous cautionary notes about the way in which investors are being herded into risk.
Yet when looking at the climate of 2007 compared to the current state of affairs, he said markets have a ways to go before reaching those dizzying heights.
"A rise in risk tolerance is something that should get your attention and focus your concentration," wrote Marks, the billionaire founder of Oaktree Capital Management. "But for it to be highly worrisome, it has to be accompanied by extended valuations. I don't think we're there yet. I think most asset classes are priced fully—in many cases on the high side of fair—but not at bubble-type highs."