Part 7/8:
Marks articulates that market behavior is often driven by human psychology, which leads to collective behavior patterns that may inflate asset values beyond their true worth. He draws attention to how periods of low-interest rates can drive investors towards more risky assets simply to seek higher returns—a trend he observes in today's markets.
Consequently, he warns of a "race to the bottom" where investors, driven by the urgent need for returns, may lower their standards, consequently creating opportunities for savvy investors who can discern value amidst the chaos.