The Psychology of Investors: How They Make Decisions

The psychology of investors shown in a group of happy business people in front of city buildings

How do investors choose between being risk-tolerant and risk-averse? What role do greed and fear play in an investor’s decision? In Mastering the Market Cycle, Howard Marks discusses how oscillations in these cycles impact investors’ psychology. In particular, he explains how shifts in foundational cycles lead to a psychological cycle between fear and greed that, in turn, causes a cycle between risk tolerance and risk aversion.  Below we’ll explain the psychology of investors.

Scott Galloway: Career Advice From The Algebra of Happiness

A woman with a light blue shirt and long brown hair sitting at a desk in an office contemplates career advice

What drives people to chase certain career paths? How can ambitious professionals avoid the common pitfalls of prioritizing success over personal life? In The Algebra of Happiness, Scott Galloway shares candid insights about career choices and their impact on personal fulfillment. His career advice stems from real-world experience launching multiple ventures and navigating the complexities of professional life. Keep reading to discover Scott Galloway’s career advice that could help you build a successful career without sacrificing what matters most.

Raising Private Capital by Matt Faircloth: Book Overview

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How should you go about securing private funding for real estate investments? What’s the best way to build lasting relationships with investors while maintaining a successful real estate business? In Raising Private Capital, Matt Faircloth provides strategies for obtaining private financing and managing investor relationships in real estate. From structuring deals to building credibility, this comprehensive guide reveals the essential steps for creating mutually beneficial partnerships between deal providers and cash providers. Continue reading for an overview of this practical book.

Greed and Fear in the Stock Market: The Investor’s Emotional Cycle

A cartoon of a stressed man at a desk surrounded by monitors showing stock trends, representing greed and fear in the stock market

Why are greed and fear the two most impactful emotions in the stock market? How does an investor’s greed increase fear? According to Howard Marks, the psychological cycle that influences the securities market most is the cycle between greed and fear. These two emotions result in rash decisions that cause economic swings. Keep reading to learn more about the role of greed and fear in the stock market.

What Is Private Capital? Understanding the Roles of Each Party

A glittery gold dollar sign and coins on a city street illustrate the question, "What is private capital?"

What is private capital, and how does it differ from traditional funding sources? What roles do investors and deal managers play in private funding arrangements? In his book Raising Private Capital, Matt Faircloth explores the dynamics between those who provide investment funds and those who manage them. His insights reveal the unique advantages of private capital partnerships and the responsibilities of each participant. Keep reading to discover the essential elements of successful private funding relationships and how they can benefit both parties.

Risk Tolerance vs. Risk Aversion: How Emotions Run the Market

A man looking at stocks on computer screens, deciding between Risk tolerance vs risk aversion

How do investors cycle between risk tolerance and risk aversion? When is the market at its riskiest? Howard Marks contends that as a result of the fluctuations between greed and fear, most investors alternate between being overly risk-tolerant and overly risk-averse. Risk tolerance leads to inflated securities prices, eventually leading investors to become risk averse because of these excessive prices. Discover how Marks explains risk tolerance vs. risk aversion, and how the former can cause the latter.

What Drives the Stock Market? The Psychological Factors

A red graph showing what drives the stock market

Are you looking to invest in the stock market? What drives the stock market? According to Howard Marks, the securities market cycle fluctuates per shifts in investor psychology that depend upon underlying foundational cycles. He argues that positive investor psychology drives bubbles in which securities become wildly overpriced, leading to crashes in which they become underpriced. Below we’ll look at what makes prices go up or down in the market.

What Is the Securities Market? How to Exploit Its Cycles

A colorful stock graph, showing the securities market

What is the securities market? Why can you exploit the securities market so easily? In Mastering the Market Cycle, Howard Marks outlines how cycles jointly drive the overall securities market. In particular, he shows how the predictable nature of foundational and psychological cycles makes for an exploitable securities market cycle.  Take a look at the factors driving the securities market cycle so you can reap large rewards from it.

How to Manage Investment Risk & Grow Your Wealth Over Time

A person checking stocks on their phone illustrates how to manage investment risk

What’s the real difference between investing and gambling your money? How can you build wealth while keeping your investments secure? In Set for Life, Scott Trench shares practical strategies for building long-term wealth through smart investment choices. His approach challenges common misconceptions about investment risk while offering clear guidance for both novice and experienced investors. Keep reading to learn how to manage investment risk and make informed decisions that can help grow your wealth steadily over time.

The 3 Impactful Types of Business Cycles in Economics

A businessman pointing to a dollar sign on a whiteboard, talking about the types of business cycles in economics

What are the different types of business cycles in economics? How do these cycles influence a business’s success? Howard Marks claims that three foundational cycles impact business prosperity (and consequently the value of securities): These are the economic cycle, the profit cycle, and the credit cycle. Let’s examine these three cycles to illustrate their underlying causes and their impact on securities.