Marks: Cycles occur because human psychology drives upside excesses and downside overcorrections
Howard Marks · #53 Howard Marks: Luck, Risk and Avoiding Losers · Mar 5, 2019 · at 17:43
Howard Marks, co-founder of Oaktree Capital, discusses the core thesis of his book 'Mastering the Market Cycle' regarding why economies deviate from average baseline growth.
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“Cycles happen because people, not electrons, but people commit excesses to the upside, usually out of enthusiasm. Which then have to be corrected, and those corrections overshoot to the downside.”
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