1. Percentage of Stocks Outperforming S&P
RBA Research
2. History of Bitcoin Drawdowns
3. Small Cap Up Almost Double the S&P in One Month
Small Cap +11% One Month
4. Russell 2000 Small Cap One Tick from All-Time Highs
Bloomberg
5. Inflation Update
6. The World Needs a Healthy U.S. Economy
Capital Group
7. Coffee Prices Break Out
8. U.S. Dollar to Russian Ruble New 25 Year Highs
Trading Economics Blog
https://tradingeconomics.com/russia/currency
9. 30-Year Mortgages Above 7%
The proof that 7% mortgage rates are causing issues in the housing sector were evident in the U.S. New Homes Sales report that came out Tuesday. New homes sales dropped by 17.3% in October. It’s the biggest drop since 2013 and 8th worst going back to 1960. Source: Mike Zaccardi
10. What the Matthew Effect Reveals About Career Success
Psychology Today Understand the psychology of success and apply it to advance your career.-Benjamin Laker
KEY POINTS
- Early career wins can snowball into greater opportunities, reinforcing long-term success.
- Visibility and recognition amplify success, making it crucial to showcase achievements.
- Networking builds on the Matthew Effect by opening doors through trusted connections.
Have you ever noticed that some people seem to climb the career ladder effortlessly, while others struggle to get their foot on the first rung? This isn’t always about talent or hard work—although both are important. Often, it’s about the Matthew Effect: the idea that initial success can create a snowball effect, making future success easier to achieve.
Psychologically, this dynamic taps into the way human perception and social behaviours amplify advantage. Success signals competence and reliability, which are qualities that others instinctively gravitate toward when making decisions about promotions, collaborations, or mentorship. This principle, named after a biblical verse about those who have being given more, explains why some professionals seem to advance faster and more smoothly than others. Understanding how this dynamic works—not just externally, but in the minds of those who influence your career—can help you harness it to your advantage.
Starting Strong: The Power of Early Wins
The first big break in your career often sets the stage for everything that follows. Think of a young graphic designer who lands a high-profile client early on. That one project, if handled well, opens the door to bigger opportunities, referrals, and a growing portfolio of impressive work. The success becomes self-reinforcing: More clients want to work with someone who’s already successful.
Early recognition builds confidence—not just in you, but in the people around you. When your manager sees you excel in one area, they’re more likely to trust you with bigger responsibilities. This phenomenon feeds into workplace psychology, where competence is often perceived rather than measured. One success leads colleagues and supervisors to view you as reliable, creating a positive feedback loop.
How to Apply This:
- Focus on excelling in one key project or role early in your career. Success in one area can act as a launchpad, so treat every early opportunity as a chance to build your reputation.
- Say yes to opportunities that might stretch your skills but offer high visibility. A bit of risk in the beginning can pay off in long-term career growth.
Building Momentum: The Importance of Visibility
Visibility is crucial to the Matthew Effect. If people don’t know about your achievements, it’s hard for success to compound. Think of an employee who consistently delivers outstanding work but doesn’t share their accomplishments. They may be overshadowed by a colleague who’s just as competent but better at self-promotion.
Consider the example of a mid-level marketing manager. By regularly presenting their team’s results at company meetings, they ensure leadershipassociates their name with success. This visibility can lead to opportunities like promotions, speaking engagements, or even being headhunted by other companies. Perception matters in the workplace, and being seen as a high performer often leads to more opportunities than quietly excelling behind the scenes.
How to Apply This:
- Learn to share your successes without coming across as boastful. Frame your achievements as team efforts or solutions to challenges, which makes self-promotion more palatable.
- Use tools like LinkedIn to showcase your work and build a personal brand. A well-maintained profile can open doors to collaborations, new roles, or mentorship opportunities.
Leveraging Networks: Success Through Connections
Another key driver of the Matthew Effect is the power of networks. People with strong professional networks are often exposed to more opportunities than those with limited connections. A tech entrepreneur, for example, might get their first big break by pitching to a mentor who introduces them to an investor. Once they have one investor, others follow, because the initial endorsement signals credibility.
Psychologically, people tend to associate success with competence. When you’re recommended by someone respected in your field, that recommendation carries weight. This is why networking isn’t just about meeting people—it’s about creating meaningful relationships that lead to trust and mutual benefit.
How to Apply This:
- Prioritise networking early in your career. Attend industry events, join professional organisations, and engage with colleagues outside of your immediate team.
- Stay in touch with your network by offering value—sharing resources, celebrating their successes, or introducing them to others. A strong network should feel reciprocal, not transactional.
Compounding Skills: How Small Improvements Create Big Gains
The Matthew Effect doesn’t just rely on external factors like visibility and networking; it also plays out internally through skill development. Consider an entry-level journalist who invests time in improving their writing, researching, and interviewing techniques. Over time, these incremental gains lead to mastery, making them a standout in their field. As their reputation grows, they’re entrusted with more significant assignments, which further improve their skills.
This compounding effect is a psychological motivator: When you see tangible results from your effort, you’re more likely to continue investing in your development. Success breeds confidence, and confidence inspires further effort, creating an upward spiral.
How to Apply This:
- Focus on developing one high-impact skill at a time. Mastery in one area often opens doors to opportunities that allow you to develop others.
- Seek feedback regularly. Knowing where you’re excelling and where you can improve will help you grow faster and more strategically.
Turning the Matthew Effect Into Your Career Ally
The Matthew Effect can seem unfair at first glance—after all, it rewards those who are already ahead. But recognising how it works gives you the tools to use it to your advantage. By seeking early wins, making your achievements visible, building strong networks, and investing in your skills, you can create the conditions for compounding success. While initial breaks are helpful, the real power of the Matthew Effect lies in your ability to capitalise on opportunities and build momentum.
For those starting from a disadvantaged position, the key is persistence and strategic focus. Every small win counts and can snowball into something much larger over time. Success may not come overnight, but understanding and leveraging the psychology of success can put you on a steady path toward it.