Howard Marks tells one of my favorite stories about overconfidence and humility. A gambler once heard of a horse race with only one horse—a sure thing if ever there was one. Sensing fortune's nod, he rushed off to the track, rent money in hand. But halfway around, the lone horse veered off course, jumped the fence, and disappeared into the fields. Confidence met reality, and reality won...

Your advisor trumpets the shelter of diversification. You Nod. It sounds wise enough. But what does it really mean? It means there is always something in your portfolio you hate.

There's a story about American writers Kurt Vonnegut and Joseph Heller attending a party given by a hedge fund billionaire on the exclusive Shelter Island. Kurt asked Joe, "How does it make you feel to know our host only yesterday may have made more money than your novel 'Catch-22' has earned in its entire history?" Joe responded, "Yes, but I have something he can never have." "What's that?" asked Kurt. "Enough," replied Joe. Comparison is the thief of joy....

Our relationship with money and markets is complex. Wealth and luxury are relative. Both are just a comparison between what we have and what other people have. Comparison is the thief of joy...

Entering 2024, investors confidently predicted up to seven Federal Reserve rate cuts this year, beginning in March, with our economy gliding in for the softest of landings...

Interest rates pull the strings of financial markets. They're the charge for money we've loaned and the required return used to discount future cash flows to the present....

We all can study economics and finance to learn how markets are supposed to work. Economic data and financial metrics are always helpful, but understanding prevailing investor psychology is essential...