How Market Cycles Affect Investor Psychology: Lessons from Benjamin Graham

Summary

The article discusses how market cycles affect investor psychology, using Benjamin Graham's experience as an example. It explains that bull markets make investors feel smarter than they are, while bear markets make them feel dumber, highlighting how human nature responds to market fluctuations. The piece references Graham's early success during the Roaring 20s, where he turned $400,000 into $2.5 million in three years, but also notes that much of this was his own money from previous successes.