Market Cycles and the Pendulum

Markets swing between euphoria and despair and spend almost no time at the fair-value midpoint. You cannot time the arc but you can locate yourself on it: when credit is loose and risk goes unpriced, hold less and demand more; when capital is scarce and sound assets trade at panic prices, do the opposite. Aggressiveness is calibrated to position in the cycle rather than to forecasts.

11 books · 7 people behind it · 4 resources

Start here

  1. A Short History of Financial EuphoriaJohn Kenneth Galbraith, 1990
  2. Mastering the Market CycleHoward Marks, 2018
  3. Devil Take the HindmostEdward Chancellor, 1999
  4. Manias, Panics, and CrashesCharles P. Kindleberger, 1978

The people behind it 7

Each person holds a book in this entry or names it in their own tags.

Investors 3

Howard Marks3 books here
EC
Edward Chancellor1 book here
JH
John Hussmannamed in their tags

Academics 2

CP
Charles P. Kindleberger1 book here
JK
John Kenneth Galbraith1 book here

Journalists 2

JK
John Kenneth Galbraith1 book here
EC
Edward Chancellor1 book here

Resources 4

Books 11

Ibn Khaldun · 1858 · Fourteenth-century theory of dynastic cycles, taxation and the rise of states
Howard Marks, Paul Johnson · 2012 · Marks on risk, cycles and second-level thinking, with commentary.
Vitaliy N. Katsenelson · 2007 · Katsenelson on buying and selling inside range-bound markets.
Vitaliy N. Katsenelson · 2010 · Shorter restatement of active value investing for flat markets.
Lars Tvede · 1997 · Tvede on how credit and business cycles drive asset prices.