credit cycle

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 Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. 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. SPONSORS Support our free podcast by supporting our sponsors: River Toyota Linkedin Marketing Solutions Fidelity Efani Shopify NDTCO Fundrise Wise NetSuite TurboTax Vacasa NerdWallet Babbel Learn more about your ad choices. Visit megaphone.fm/adchoices

IN THIS EPISODE, YOU’LL LEARN: 01:10 - Why we have cycles. 02:11 - What the credit cycle is. 09:16 - How are cycles interrelated. 11:53 - Where we are in the real estate cycle. 17:55 - Where we are right now in the cycle. 25:35 - How adjusting risk to your portfolio depends on the market cycle. 31:02 - Why junk bonds might be a good investment depends on the credit cycle. 36:10 - Which questions to ask an asset manager. 39:32 - How to evaluate a track record. 50:50 - Why assets managers like to talk about their mistakes. 1:08:15 - How to think about risk and reward. *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Listen to David Stein’s podcast, Money For the Rest of Us. Visit David Stein’s Website. Visit David Stein’s YouTube channel. Listen to our interview with David Stein about Netflix. Listen to our interview with David Stein about Evergrande, Alibaba, and the Collapse. Our interview with Howard Marks about Mastering the Market Cycle.   NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts.  SPONSORS Support our free podcast by supporting our sponsors: River Toyota Linkedin Marketing Solutions Fidelity Efani Shopify NDTCO Fundrise Wise NetSuite TurboTax Vacasa NerdWallet Babbel Learn more about your ad choices. Visit megaphone.fm/adchoices