Changing the way we think about investing, using evidence rather than guesswork

Video Transcription

Hi!

Welcome for today’s Arch capital video blog

Today we’re going to talk about where the returns come from.

Now (….) are really concerned about how the money will last and what rather turn that need to

enjoy in gradual time

There are two main schools of thought when we come down to investments.

One is that there are making predictions about markets and try to outguess the market.

In that approach, really what’s happening is a lot of training, there’s a little diversification because they really try to concentrate on a few ideas and because of that cost are relatively high.

The other school of thought which is really based on the last 50 to 60 years of academic research that shows that market prices are fairly efficient. So this school of thought relies on market prices.

They’re using that approach training and it’s actually very low.

Diversification is huge and really rely on diversification to minimize risk and cost much more reasonable.

We’d like to look at these two schools of thought.

One is really speculated. If there’s a change in the market using this approach, is certainly going to be making movements because the forecast have change.

Over here, is a disciplined process around that really looks at that quality of investment.

At Arch Capital, we believe that using this investing approach is a much more reliable way for our

clients to achieve their retirement outcomes.

We don’t want to speculate, we certainly want to be investing in using a process of work and backed up by a very good a time.

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