Lucas Jackson/Reuters
- Billionaire investor Marc Lasry expects a tricky few months for the US economy and stock market.
- The Avenue Capital CEO cited higher oil and food prices, rising interest rates, and modest growth.
- Lasry said the Russia-Ukraine conflict is too uncertain for him to deploy money in the region.
Billionaire investor Marc Lasry forecasted a tough few months for the stock market and economy, predicted bargains would emerge, and warned against trying to get rich from Russia’s invasion of Ukraine during a Fox Business interview on Tuesday.
The Avenue Capital CEO and cofounder highlighted the recent surge in oil and food prices — fueled by economic sanctions on Russia and supply disruptions in Ukraine — along with rising interest rates and modest GDP forecasts, as some of the near-term challenges he sees.
“When there’s a lot more issues, that’s not great for the economy, and it’s not great for the stock market,” Lasry said. “It’s going to be difficult in the next six months,” he continued, adding investors should be more cautious as a result.
Avenue Capital manages about $12 billion of assets, and focuses on distressed debt and special situations. Lasry predicted anxious investors would pull their money out of markets, creating opportunities for his fund in the energy sector and other industries.
“We’re waiting for people to get nervous, we’re waiting for people that need liquidity,” he said. “We’ll provide that liquidity, but obviously we’ll charge quite a price.”
Lasry noted Avenue has been offering senior, secured debt to capital-hungry startups, meaning the loans are backed by collateral, and the firm will be repaid ahead of other creditors if the businesses run into trouble.
The billionaire also suggested some of the liquidity that flooded the tech industry during the pandemic might dry up as investors take cover, allowing him to charge more for his capital in that space.
Finally, Lasry cautioned against trying to take advantage of the sanctions and debts weighing on Russia.
“You’re taking a lot of risk by doing it,” he said. “If it works, you’ll do exceptionally well, but if it doesn’t work, you’re going to lose all your money. People have to be prepared for that.”
Lasry added that his firm isn’t in the business of placing geopolitical bets. “When we look at Russia, it’s not a place we want to invest in, because we just don’t know what’s going to happen,” he said.
Read more: These 33 cheap stocks look like second-quarter bargains, according to Morningstar
Powered by WPeMatico
