Part 3/9:
The recent turbulence in tech stocks, particularly Nvidia’s significant drop in value, highlights the fragility of market sentiment. In tracing the fall, Marks pointed out that the declines were not just isolated to Nvidia but affected several other sectors and investment management stocks. He emphasized that the prevailing influence behind this widespread reaction is psychology. In the short run, markets often don't respond based on fundamental shifts but on collective emotional responses, leading to what he termed “temporary insanity.”