Quote for the Week
I refer to a cartoon whose caption is: “Everything that was good for the market yesterday is no good for it today.” I wrote that “in the real world, things generally fluctuate between ‘pretty good’ and ‘not so hot.’ But in the world of investing, perception often swings from ‘flawless’ to ‘hopeless.’” Nobody can say why this happens or why the tipping point was reached. But the psychology of the market is so irrational and excessive in its swings…
You just can’t think of the market as this machine. There is no schematic for how it works. It just picks funny things to obsess about on the positive side for a while and then the negative side. This could be the beginning of a down leg or not — but you just can’t attach too much intelligence to the market’s daily fluctuations. — Howard Marks (source)
From the Archives
Last Call
- A Few Little Ideas And Short Stories – M. Housel
- Why the Active/Passive Debate Matters – D. Nadig
- Better to Be Talented or Lucky? – Harvard Gazette
- A Great Company That’s a Turtle, Not a Hare – J. Rekenthaler
- Humans Are Not Built For Investing (podcast) – At the Money
- The Psychology of the Psychic – MIT Press
- The Wisdom of Fish Schools – Nautilus
- Inside the Race to Make the World’s Fastest Running Shoe – FT