Opening at the start of a new year, the exhibition then, is itself a ritual,
an attempt at forecasting and influencing the course of 2018.
The movements of securities prices on a momentary basis are always guided by specific human action and
attempts at forecasting and calculating an uncertain future.
Not exact matches
This includes regular press conferences following Federal Open Market Committee (FOMC) meetings by the Fed chair; the publishing of growth and inflation
forecasts of FOMC participants; and a concerted
attempt to lay out the guideposts that the FOMC will look
at to assess progress toward our mandate.
In fact, I don't believe that the
attempt to
forecast these shorter term returns would be of any benefit
at all to our portfolio management.
In recent years, the most intense discussion
at Camp Kotok has revolved around the Fed as everyone eagerly anticipated and
attempted to
forecast first Fed tapering and then the timing and pace of rate hikes.
I make no
attempt to
forecast either business or the stock market; the above is simply intended to dispel any notions that stocks have suffered any drastic decline or that the general market, is
at a low level.
Those who base their work on
forecasting, instead of prediction, are far more adept
at dealing with uncertainty and risk because these twin realities of contemporary politics are central to the very concept of
forecasting; whereas prediction dogmatically
attempts to overcome them.
To make a first
attempt at this long - range
forecast, we can just extrapolate current trends.
The FIG index
attempts to
forecast changes in the cyclical direction of inflation by tracking such things as materials prices, import prices, and delivery times (ECRI's Weekly Leading Index and Future Inflation Gauge are available on its website
at www.businesscycle.com).
Value investing, to my mind,
attempts to avoid the need for us to be a super forecaster because its fundamental aim is to buy businesses with valuations that impute very dark scenarios for the business and don't require said business to be able to incrementally deploy capital
at high return rates for years into the difficult - to -
forecast future to justify today's valuation.
I had
attempted a similar project
at the 3rd conference with my poster «Comparison of Climate
Forecasts: Expert Opinions vs. Prediction Markets» in which my abstract proposed the following: «As an experiment, we will ask participants to go on the record with estimates of probability that the global temperature anomaly for calendar year 2012 will be equal to or greater than x, where x ranges in increments of 0.05 °C from 0.30 to 1.10 °C (relative to the 1951 - 1980 base period, and published by NASA GISS).»
[37] The results are striking — the models fail to do a reasonable job
at predicting the past 30 years of temperatures, yet alarmists
attempt to use them to
forecast temperatures centuries from now.
Ironically, a former employee of the UK weather office Hubert Lamb left that agency to set up the Climatic Research Unit (CRU)
at the University of East Anglia because he could not get support for his
attempt to improve
forecasting by understanding past weather patterns.
Weather
forecast is the
attempt to make a best possible prediction of the exact state of the system
at all locations
at a specific point in time in the future.
At this point it is possible to
attempt a full
forecast of the climate since 2000 that is made of the four detected decadal and multidecadal cycles plus the corrected anthropogenic warming effect trending.
Here in Europe we are shown
attempts at regional short - term climate
forecasts, i.e. what kind of weather is to be expected in the next 3 months.