There was an excellent column in the WSJ today by a former member of Clinton’s administration, called “The End of Economic Forecasting.” http://www.wsj.com/articles/the-end-of-economic-forecasting-1466723149
The author points how the world is dominated by finance now, with over $75 TRILLION in assets under professional management (The entire US economy is only $18 Trillion). With so much cash under management, the world’s markets are way too volatile to predict anything.
Two years ago, everyone predicted that emerging economies (China, India, Russia, Brazil, etc.) would surge, that commodity (especially oil) prices would shoot up, and that interest rates would rise. Everyone was wildly wrong.
The Brexit turmoil today is just another example of this volatility and the inability to predict anything.
I predict … that nobody can predict anymore.
The takeaway is to just work hard and to make hay while the sun shines, as per usual.
And to also keep your powder dry (stay lean and liquid) so you can ride out the inevitable changes that can take place overnight.
Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646
