With Larry Edelson’s passing last week, I lost both a friend and a mentor. I met Larry my very first day at Weiss back in 2002. He was already a larger-than-life personality, but always took time out to mentor us with his unique view of the markets.
Larry taught me a great deal about markets and investing over the next fifteen years; about taking the long view to identify the big, macro trends. An avid student of history and the cyclical nature of markets, he taught me the value of evaluating markets from a historical perspective.
There’s really nothing new in financial markets that hasn’t happened before. While history may not repeat exactly, it does rhyme.
In fact, the recurring, cyclical nature of financial markets is a perfect reflection of its participants; millions of individual investors collectively making value judgments every single day.
Markets are much more than numbers, Larry would say, markets are people… it’s all about people.
Indeed, successful investing is mostly about studying human behavior … hope and fear, greed and envy … the emotions that make up market sentiment.
Take commodities. There is no better example of the cyclical nature of markets.