Saturday, January 14, 2023

Forecasting is hard; now try and engage with predictions


 -Jason Zweig The Devil's Financial Dictionary 

No one said forecasting is easy. It is not. Yet, we must engage in predictions, extrapolations, scenario analysis, and judgments. We first must admit that it is not easy, and we will likely fail. Second, we need to realize others are not good at it either. Third, providing deep descriptions and details about the past and present are not forecasts, that is just sharing knowledge. Finally, we constantly must make judgments, assessments, or likelihoods about the future. 

Doing nothing involves a prediction, a prediction that the world will stay the same. Good luck with those predictions, but you can help yourself by using trends as a base for judgment.

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