Marks qualifies the efficient market hypothesis, saying beating the market is hard but possible for a few.
“the efficient market hypothesis says you can't beat the market. And what I would say is it's not that you can't beat the market, but it's hard. And rather few people can do it.”
Marks explains why the claim that riskier investments have higher returns is logically incoherent.
“if it were true that taking more risk is the surefire path to a higher return, then it wouldn't be risky. Can't be right. So I was always unsatisfied with that.”
Marks clarifies that risky assets must appear to offer higher returns, not that they deliver them.
“assets that are expected to be riskier have to appear to offer a higher return or nobody will make those investments. That makes a 100% sense, doesn't it? So that's what this relationship means”
Marks defines market cycles as excesses and corrections rather than simple ups and downs.
“The way to think of of a pattern of of cycle is excesses and corrections. So so for example, let's look here. What's happening here?”