FYI: We’re coming up on that time of year when professional pundits and investors alike trot out their annual forecasts for the upcoming year.
I have nothing against forecasts. It can be a fun exercise and if we want to get into semantics, we’re all forecasting in one way or another based on how our portfolios are positioned.
But I’ve always found it’s more useful as an investor to prepare than to predict.
Prediction is about trying to be right while preparation is about setting the right expectations. And investing has a lot more to do with setting reasonable expectations than being right all the time because it’s hard to be right in the markets.
Here are some more distinctions between prediction and preparation:
Regards,
Ted
https://awealthofcommonsense.com/2018/12/prediction-vs-preparation/
