Predictions and forecasts: Our views on the Melbourne Cup and the US election

We all want to pick a winner on Melbourne Cup Day! So once a year, on the first Tuesday in November, we become experts – scrupulously studying form guides, watching the movement in TAB odds and calling ‘mates’ you haven’t spoken to for 11 months and 29 days for an inside tip. Investing in stock markets is often much the same. While serious investors try to digest and analyse the relevant information available, most people just want to know – are they making the right call? This is where the distinction between forecasting and predicting comes into play. Failure to differentiate the two can lead to poor investment decisions and outcomes. (VIEW LINK)