Zip your wallet against economic forecasts

Roger Montgomery

Montgomery Investment Management

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)


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Roger Montgomery
Founder and Chairman
Montgomery Investment Management

Roger Montgomery founded Montgomery Investment Management, www.montinvest.com in 2010. Roger has than three decades of experience in investing, financial markets and analysis. Roger also authored the best-selling investment book, Value.able.

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