As we start a new year with many changes to our Government, many investors want to know what direction the markets will move. Economic forecasting has been around for ages, but to what level can it be taken seriously. The Guardian recently reported:
While accepting the Nobel Prize for economics, Friedrich Hayek made an astonishing admission. Not only were economists unsure about their predictions, he noted, but their tendency to present their findings with the certainty of the language of science was misleading and “may have deplorable effects”.
I think that it is important to read forecasts from many different sources to help guide your investment decisions. I think it is equally important to know your risk tolerances, time horizons, and with the help of a Certified Financial Planner Professional™, you pick quality investments that with regular review and rebalancing, keeps you on track for retirement.