Private Markets 'Often as Risky as Public' Ones

The video explores the attractiveness of private markets for investors, highlighting the liquidity premium and perceived lower risk compared to public markets. However, a deeper analysis reveals that private markets can be as risky as public ones when true economic risks are considered. Investment decisions should be based on the investor's starting point, preferences, and time horizon, leading to the conclusion that the choice between private and public markets depends on individual circumstances.

What is one of the main attractions of private markets for investors?

• Government backing

• Higher liquidity premium

• Guaranteed returns

• No risk involved

How do private markets compare to public markets in terms of risk after adjusting for economic factors?

• Private markets are often as risky as public markets

• Private markets are always less risky

• Public markets are always riskier

• Private markets are risk-free

What should investors consider when deciding to invest in private markets?

• The investor's starting point and preferences

• The current stock market trends

• The latest technology trends

• The advice of friends

Which factor is NOT mentioned as influencing investment decisions in private markets?

• Investor's age

• Investor's preferences

• Investor's starting point

• Investor's time horizon

What is the concluding thought about investment decisions in private markets?

• They are straightforward and easy

• They depend on various factors

• They are always risky

• They guarantee high returns