Howard Marks, co-founder of Oaktree Capital Management, cautioned investors against letting emotions drive decisions amid the Middle East conflict. Speaking at the Australian Financial Review Business Summit in Sydney, Marks emphasized the unpredictability of the situation, noting that nobody knows how long the conflict will last or what the outcome will be.

Marks argued that since the implications are unclear, there may be no smart moves to make. His comments came as US President Donald Trump stated there's no fixed timeline for the war, while Iran continues missile strikes in response to attacks that killed Supreme Leader Ayatollah Ali Khamenei. The conflict has already disrupted energy markets.

The veteran investor also addressed concerns in the private credit market, noting that while it has expanded significantly over the past decade, cracks are emerging. Marks pointed to recent bankruptcies including subprime auto lender Tricolor Holdings and US auto parts maker First Brands Group as warning signs. He suggested that cognitive dissonance may be causing investors to underestimate these risks.