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The Importance of Understanding the Cyclicity of Markets
Howard Marks is the founder and CEO of Oaktree Capital Management. He believes that real estate has performed well since the great financial crisis due to currency debasement and policies like QE by the Federal Reserve. The bottom line is that real estate is subject to the cyclical ups and downs just like all other markets. To help avoid these dangerous generalizations, Marks recommends removing a number of words from an intelligent investor's vocabulary.