Marks argues investing requires optimism because it involves giving money to others hoping for more later.
“By the way, I believe that there is a predisposition to be optimistic. Not pessimistic, optimistic. Why is that? Because you have to be optimistic to be an investor.”
Marks identifies October 1, 2022 as the turning point when Fed dovishness began driving market optimism.
“I'll say since 10/01/2022, which is a special date for a reason, it's when the Fed turned more dovish.”
Marks says investors must prepare for less optimistic times even while optimism drives markets higher.
“And part of that means with everything you do, some part of your body has to be saying, yes, but how do we prepare for less optimistic times?”