How Capital Moves in a Market Correction FII6

The discussion revolves around the evolving investment landscape, with a focus on the increasing importance of impact investments and the need for careful evaluation of projects and entrepreneurs in the current market environment. The conversation emphasizes the paradigm shift caused by extremely accommodating monetary policy and the impact on asset pricing and credit markets. It also highlights the significance of diversity within investment teams, the need for adaptability, and a focus on return on capital rather than just return of capital in investment decision-making. The conversation also delves into the implications of rising interest rates on asset prices and the cost of liquidity, as well as the shift towards seeking high recurring coupon, downside-protected assets. Additionally, it underscores the importance of humility, nimbleness, and the focus on impact investments in navigating the evolving investment landscape.