TIP562: How to Cope With Market Cycles

Clay Finck completes his review of Howard Marks’ book – Mastering the Market Cycle. This is a wonderful book for understanding market cycles and where we are at in the cycle at any given time. Most investors aren’t aware of the cyclicality of markets and are prone to fall victim to greed and fear at the exact wrong times. Superior investors are aware of markets cycles, and position themselves to profit from them.

IN THIS EPISODE YOU’LL LEARN:

00:00 - Intro.

01:33 - How Howard Marks thinks about the real estate cycle.

13:02 - The three stages of a bull market and bear market.

14:45 - Why cycles will continue indefinitely into the future.

15:30 - How Isaac Newton lost a fortune in the South Sea Bubble in 1720.

21:47 - The telltale sign to look for to almost be certain that you’re in a market bubble.

33:41 - Why ‘silver bullets’ never pan out well for investors.

45:05 - Why Oaktree thinks timing market bottoms is a fool’s errand.

47:13 - Why success can bring the seeds of failure for many investors, companies, and sectors.

58:05 - Howard Marks’s thoughts on where we are at in the market cycle in 2023.

72:55 - How to know when is the appropriate time to position your portfolio aggressively and defensively.

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.

BOOKS AND RESOURCES

• Check out our newly released TIP Mastermind Community.
• Check out Part 1 of our review of Mastering the Market Cycle, or watch the video here.
• Howard Marks’ book – Mastering the Market Cycle.
• Check out our recent episode covering Clay’s review of Howard Marks’ book – The Most Important Thing, or watch the video here.
• Check out our recent episode covering the 100 to 1 in the Stock Market by Thomas Phelps, or watch the video here.
• Related episode: Listen to TIP378: Move Forward With Caution w/ Howard Marks or watch the video here.
• Related episode: Listen to TIP545: The Third Sea Change Has Begun w/ Howard Marks or watch the video here.

NEW TO THE SHOW?

• Check out our We Study Billionaires Starter Packs.
• Browse through all our episodes (complete with transcripts) here.
• Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool.
• Enjoy exclusive perks from our favorite Apps and Services.
• Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
• Learn how to better start, manage, and grow your business with the best business podcasts.

P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!

SPONSORS

• Invest in Bitcoin with confidence on River. It’s the most secure way to buy Bitcoin with 100% full reserve custody and zero fees on recurring orders.
• Look good and feel good with True Classic‘s range of summer essentials, crafted with premium quality fabrics at an accessible price. Get 25% off today with the code WSB.
• Send, spend, and receive money around the world easily with Wise.
• Choose Toyota for your next vehicle – SUVs that are known for their reliability and longevity, making them a great investment. Plus, Toyotas now have more advanced technology than ever before, maximizing that investment with a comfortable and connected drive.
• Have the visibility and control you need to make better decisions faster with NetSuite’s cloud financial system. Plus, take advantage of their unprecedented financing offer today – defer payments of a full NetSuite implementation. That’s no payment and no interest for six months!
• Easily diversify beyond stocks and bonds, and build wealth through streamlined CRE investing with EquityMultiple.
• Experience real language learning for real conversations with Babbel. Get 55% off your Babbel subscription today.
• Make connections, gain knowledge, and uplift your governance CV by becoming a member of the AICD today.
• Support our free podcast by supporting our sponsors.

HELP US OUT!

Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.