A common mistake investors make is trying to predict when to buy and sell stocks. Understanding how markets move can help us make smarter decisions about where to put our money.
Business cycles and markets are not linear - but like a wave - a bit like the sine curve! As Howard Marks says, “Cycles clout is heightened by the inability of the investors to remember the past.”
This stage signals the concept of death or declines within the market cycle. Investors lose money and focus on re-evaluating their strategies and risk tolerance just like devotees focus on reflecting on their obstacles in life.