Howard Marks：The Role of Confidence, Excerpt 2

The primary impact of confidence on the economy is simple. If people think the economic future will be good, they’ll spend and invest . . . thus things will be good. Consumers’ optimism will translate into incremental demand for goods, adding to GDP. Consumer buying will convince businesses to invest in expanded facilities and additional workers in order to keep up with growing demand. Businesses’ investment in plant and workers will add to GDP. Newly hired workers will have money to spend, and their buying will add further to the cycle. The reports of confidence-fueled increases in GDP and other positive mentions of the economy in the media will reinforce this virtuous circle of optimism: back to step one.

Source： https://www.oaktreecapital.com/docs/default-source/memos/2013-08-05-the-role-of-confidence.pdf
Locator：Memo, excerpt 2 · Verified：2026-10-19 · Verification：Short excerpt

版权仍存续；仅摘录并链接橡树资本官网原文，不托管全文。

This text is still in copyright. Only a short excerpt is shown; read the full text at the official link above. Copyright

← Back to the library