HEmma

“Greece’s economic problems weren’t new. For decades, the country had been plagued by low productivity, a bloated and inefficient public sector, massive tax avoidance, and unsustainable pension obligations. Despite that, throughout the 2000s, international capital markets had been happy to finance Greece’s steadily escalating deficits, much the same way that they’d been happy to finance a heap of subprime mortgages across the United States. In the wake of the Wall Street crisis, the mood grew less generous. When a new Greek government announced that its latest budget deficit far exceeded previous estimates, European bank stocks plunged and international lenders balked at lending Greece more money. The country suddenly teetered on the brink of default.”
― Barack Obama, A Promised Land

“A few years ago my friend Jon Brooks supplied this great illustration of skewed interpretation at work. Here’s how investors react to events when they’re feeling good about life (which usually means the market has been rising): Strong data: economy strengthening—stocks rally Weak data: Fed likely to ease—stocks rally Data as expected: low volatility—stocks rally Banks make $4 billion: business conditions favorable—stocks rally Banks lose $4 billion: bad news out of the way—stocks rally Oil spikes: growing global economy contributing to demand—stocks rally Oil drops: more purchasing power for the consumer—stocks rally Dollar plunges: great for exporters—stocks rally Dollar strengthens: great for companies that buy from abroad—stocks rally Inflation spikes: will cause assets to appreciate—stocks rally Inflation drops: improves quality of earnings—stocks rally Of course, the same behavior also applies in the opposite direction. When psychology is negative and markets have been falling for a while, everything is capable of being interpreted negatively. Strong economic data is seen as likely to make the Fed withdraw stimulus by raising interest rates, and weak data is taken to mean companies will have trouble meeting earnings forecasts. In other words, it’s not the data or events; it’s the interpretation. And that fluctuates with swings in psychology.”
― Howard Marks, Mastering The Market Cycle: Getting the Odds on Your Side

“Our deepest fear is not that we are inadequate. Its that we are powerful beyond measure. It is our light, not our darkness, that most frightens us. We ask, 'Who am I to be brilliant, gorgeous, talented, fabulous?' Actually, who are you not to be?”
― Marianne Williamson

“If you are influenced by the opinions of others, you will have no desire of your own. Close friends and relatives, while not meaning to do so, often handicap one through "opinions" and sometimes through ridicule, which is meant to be humorous. Thousands of men and women carry inferiority complexes with them all through life, because some well-meaning, but ignorant person destroyed their confidence through "opinions" or ridicule. You have a brain and mind of your own. Use it, and reach your own decisions. If you need facts or information from other people, to enable you to reach decisions, as you probably will in many instances; acquire these facts or secure the information you need quietly, without disclosing your purpose.”
― Napoleon Hill, Think and Grow Rich