Zip your wallet against economic forecasts

Roger Montgomery

While I believe macroeconomics is just about useless in explaining future returns, microeconomics is vital. Indeed, when explaining the success of Berkshire Hathaway in October 2003, Charles T. Munger noted; “year after year, in a kind of grind-ahead fashion, with very few failures, it eventually drew some attention, indicating that Warren and I knew something useful about microeconomics.” Macroeconomics is not a hard science, like mathematics or physics. It is a soft science and its analysis, and application to the pursuit of profits in financial markets is more a dark art than it is a robust tool that can be relied upon to produce predictable outcomes. If someone tells you that you should be doing X or Y because GDP, unemployment or inflation will be A, B or C, zip up your wallet. Read the full story: (VIEW LINK)


Roger Montgomery

Roger Montgomery founded Montgomery Investment Management, www.montinvest.com in 2010. Roger brings more than two decades of investment, financial market experience and knowledge. Roger also authored the best-selling investment book, Value.able.

Expertise

macroeconomics

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