Likewise, most collapses are preceded by a wholesale refusal to finance certain companies, industries, or the entire gamut of would-be borrowers. Marks references the 2008 crisis and investors’ “learning” that the market always quickly recovers because that was the outcome following the crisis. If you have faith in economics as a science not a theoretical social study with algebra added for ‘proof’, then this is for you. Investment success is ultimately determined by positioning, asset selection, aggressiveness/defensiveness, skill, and luck.

It's given me a few things to think about, but it hasn't made me feel more confident in my ability to read the market.Writings by Marks and a select few other investment masterminds serve not only for learning but more importantly as a practical grounding tool to help you stay the course.

Inflation is a result of increasing demand for goods relative to supply, an increase in raw materials and labor costs, and/or when a currency tied to imports declines relative to a currency tied to exports.The greatest lessons regarding cycles are learned through experience…as in the adage ‘experience is what you got when you didn’t get what you wanted. The risk is completing a project while the economy is headed for recession with a rising supply/shrinking demand in the market.