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.

How to Manage Your Life: 4 Strategies for a Better Future

A woman happily leaving the workplace as part of her learning how to manage her life

Are you overwhelmed by the daily challenges of managing your finances and career? How can you navigate these aspects of life with more confidence? Learning how to manage your life effectively requires practical strategies and emotional wisdom, as explored in Melody Beattie’s book, The Language of Letting Go. With her strategies, you can create a more balanced and fulfilling life. Continue reading for ways you can take control of your future.

What Causes Mental Illness in the Brain? The Toxic Process

A brain with a sad face, representing what causes mental illness in the brain

What kind of effect does mental toxicity have on your body? How do unhealthy thoughts lead to mental toxicity and mental illness? Caroline Leaf says that unhealthy thinking is what causes mental illness in the brain, not deficiencies or abnormalities in your physical brain. She refers to this as mental toxicity. Let’s look at the process of mental illnesses forming in the brain, from an unhealthy thought to toxic energy.

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.

Cleaning Up Your Mental Mess by Caroline Leaf: Overview

A woman reading a book in a therapist's office

What’s Cleaning Up Your Mental Mess by Caroline Leaf about? Do you need a mental detox? In Cleaning Up Your Mental Mess, Caroline Leaf discusses mental toxicity, its sources, and its effects on the brain. She explains her solution to mental toxicity, neurocycling, and how you can practice it. Read below for an overview of the book Cleaning Up Your Mental Mess.

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.

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.  

What Causes Bad Thoughts? The Sources of Mental Toxicity

A woman with pink colors coming out of her head, showing what causes bad thoughts

What causes some people to suffer from mental toxicity? How does one unhealthy thought lead to a toxic mind? Caroline Leaf says mental toxicity occurs when you’re prone to unhealthy thinking patterns. To help people avoid mental toxicity, she outlines what causes bad thoughts and people who are prone to them. Let’s explore two sources of unhealthy thinking and discuss how a single unhealthy thought can lead to mental toxicity.

The Effects of Negative Thinking on Your Mind and Body

A woman holding her head in pain as one of the effects of negative thinking

How do unhealthy thoughts change your physical health? How does mental toxicity cause bad decision-making? Caroline Leaf says that when toxic energy accumulates in your mind and brain, it has negative mental and physical effects. These effects can take a toll on your life if not managed in a healthy manner. Let’s explore a few of the effects of negative thinking.