Building an investment portfolio to withstand the unknown.
Don’t listen to market prognosticagors; no one can tell the future.
Market opinions are ubiquitous and, unfortunately, many are broadcast with the intention of profiting from a reaction by the masses. In the investment industry we call this “talking your book.” But even prognosticators with the purest of intention lack a crucial element; the ability to foretell the future. And even if one could correctly predict future events, that doesn’t mean he or she will profit from this information. Markets are very complex systems, with prices driven by millions of people reacting to millions of factors, and people often do not react as one might expect. Investors with a portfolio built to withstand the unknown will almost always outperform investors who make decisions with their ‘certain’ knowledge of the future.