The Psychology of Market Cycles

Every market cycle has the same emotional script. The characters change. The company names change. The story never does.

Why This Matters

Market cycles are not primarily driven by economic fundamentals alone — they are driven, amplified, and ultimately reversed by the cycle of collective investor psychology. Euphoria pushes prices above what fundamentals justify. Despair pushes prices below what fundamentals justify. Understanding where the current emotional cycle sits — in real time — allows you to calibrate risk and opportunity with a precision that economic analysis alone cannot provide.