One of the favorite pastimes for investors, both professional and individual, is to engage in prediction of the future. We spend hours debating the likelihood of inflation, the Federal Reserve’s next move or the likely GDP growth of our favorite country. It’s almost like, “If we can just imagine the right outcome for the next year, or decade, then our investing strategy will become obvious.” In my experience this is a fallacy. Not only does trying to predict the future not help, I think it can be detrimental to your investing success. It forces you, if even unconsciously, to bet on the outcome that you have envisioned. A better use of time and intellectual horsepower is to concentrate on preparation vs. predication
Note: The contents of this site are general in nature and not intended as specific investment advice. All investments are subject to risk; including loss of investment value. If you have any question regarding investments or concepts in these pages, please consult with an investment professional.