TIP559: Mastering the Market Cycle by Howard Marks
We Study Billionaires - The Investor’s Podcast Network
Stig Brodersen
4.6 • 3.6K Ratings
🗓️ 16 June 2023
⏱️ 62 minutes
🧾️ Download transcript
Summary
On today’s episode, Clay reviews 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.
03:32 - Why it’s important to understand market cycles to be a superior investor.
11:05 - What drives market cycles and why they exist.
23:14 - How to think about the economic cycle, and the governments role in managing the economic cycles.
30:53 - How to identify where we are at in a market cycle.
32:08 - Why the market’s mood resembles that of a pendulum swinging back and forth.
32:30 - Why cycles are inevitable, and will likely always be a key driver of markets into the future.
38:47 - What the greatest source of investment risk is.
58:03 - What Howard Marks learned from managing billions of dollars during the great financial crisis.
58:57 - Why the credit cycle is the most volatile of all cycles, and has the greatest impact on markets.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Check out our newly released TIP Mastermind Community.
- 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.
- Follow Clay on Twitter.
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Transcript
Click on a timestamp to play from that location
| 0:00.0 | You're listening to TI-P. |
| 0:30.0 | Now, let's talk about the best market cycle of the year. |
| 0:33.5 | During this episode, we've thought it's important to understand market cycles to be a superior |
| 0:37.5 | investor, what drives market cycles, and why they exist, and how to identify where we're |
| 0:42.6 | at in a market cycle. |
| 0:44.3 | Why cycles are really inevitable, and will likely always be a key driver of markets in |
| 0:48.9 | the future. |
| 0:49.9 | How to think about the economic cycle and the government's role in managing economic cycles, |
| 0:54.5 | what the greatest source of investment risk is, why the credit cycle is the most volatile |
| 0:59.7 | of all cycles and has the greatest impact on markets in so much more. |
| 1:04.1 | At the tail end of the episode, I also share a story of Marx's experience going through |
| 1:08.4 | the great financial crisis, and what it taught him about identifying and profiting from the |
| 1:12.9 | most extreme cycles. |
| 1:14.7 | Without further ado, here is my episode covering the first half of Mastering the Market |
| 1:18.8 | Cycle by Howard Marx. |
| 1:21.6 | You are listening to THE Investors Podcast, where we study the financial markets and |
| 1:29.4 | read the books that influence self-made billionaires the most. |
| 1:32.8 | We keep you informed and prepared for the unexpected. |
| 1:36.4 | Alright, so like I mentioned at the top, the title of this book is Mastering the Market |
| 1:48.6 | Cycle by Howard Marx, and on the front it states is subheading, getting the odds on your |
| 1:53.2 | side. |
| 1:54.2 | On the inside cover of the book, it gets praised from Ray Dalio in Charlie Munger, which |
... |
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