Welcome to Money for the rest of us. This is a personal finance show on money, how it works, how to invest it and how to live without worrying about it.

I'm your host, David Stein. Today is episode 224. It's titled Mastering the Market Cycle.

And that title is the title of a brand new book by Howard Marks, the investor he's the co-founder of

Oak Tree Capital. The book came out today October 2nd 2018 I downloaded it on my Kindle, read it in one setting and I want to

share some of the principles that I learned from the book. Howard Marks is one of my virtual investment mentors.

I have followed his work for years

at my former investment advisory firm. I invested a number of my clients, my college

endowment clients in Oak Trees distressed debt funds. I have visited their shop on site in Southern California.

Howard Marks has spoken at my firm's client conference. In the past I've met him once

but he doesn't know who I am but we can still learn from investors like them and I want to

Share some of the important insights that I garnered from the book because it very much is in line

with how I invest and how I have invested for several decades now.

To kick it off, there was an article last week by Jason Zweig in the Wall Street Journal,

and it talked about how the dumb money, the dumb money is us.

Individual retail investors as opposed to that that's that's the term

the smart money, hedge funds supposedly institutional investors, that's

from they apply to us to individual investors.

I don't think, sometimes it's't think sometimes it's not. In this

particular article Jason Zweig is pointing out that the retail money has been

moving from U.S. stocks to non-U.S. stocks for a number of years now.

He points out that over the past 10 years, as U.S. stocks hugely outperformed, that investors

took $34 billion out of U.S. funds and added a trillion to international.

...