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Showing posts with the label #behaviouralfinance

The fight is not one of knowledge vs ignorance, but of faith vs fear

Equity markets are fundamentally unknowable. If markets and/ or investments lent themselves to rational analysis in any significantly predictive way, somebody (or more properly, somebody's computer) would have perfected that analysis long since and would have taken away all the chips of everybody else at the table. This has not happened. And if it hasn't happened by now- with every computer nerd in the washing through his computer every recorded trade since the Assyrians swapped wheat to the Babylonians for bronze- it is not going to happen. The secret is: there is no secret.  No matter how much you know, you still can't prove what's going to happen in the future. And the more you try to prove what's going to happen, the more you put yourself in an obviously false position. Once again: no one can, with any precision, give knowledge of the future. The battle we fight is not one of knowledge vs. ignorance, but of faith vs. fear. Your belief system is your sword and yo...