Part 3/8:

Prospective predictions in the investing realm are fraught with uncertainties, as human behavior can often lead to unexpected market movements. For instance, in the 2016 presidential elections, many investors predicted a market collapse should Donald Trump win; instead, the market soared. Such occurrences highlight that it’s not about correctly predicting outcomes but rather about making investment decisions based on present conditions without overextending confidence about the future.

Marks underlines the importance of awareness about market cycles, which always exist but are often misunderstood. Investors frequently exhibit procyclical behavior—opting for risk when the market is thriving, instead of displaying contrarian tendencies which can yield better results.