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Marathon Asset's Richards Expects to Be Bear Until 2024 as Profits Sag

  • ‘A 5% decline in EPS is my base case assumption for 2023’
  • Expects distressed debt managers ‘will get busy again’
Bruce Richards

Bruce Richards

Photographer: David Paul Morris/Bloomberg
Updated on

US investors should expect a sharp decline in earnings guidance and more non-investment grade corporate loan defaults, according to Bruce Richards, chairman and chief executive of Marathon Asset Management, a $24 billion global credit manager in New York.

Stocks have been struggling to find a direction amid signals of cooling inflation, an easing labor market and hawkish calls from the Federal Reserve. Richard’s advice for investors is to “stay cautious, my friend. The best is yet to come.”