The Three Most Important Words in Investing

Mid-week market update: As expected, the Fed stayed on hold today and took a wait-and-see attitude on the timing of rate cuts. While economic data has softened recently, as evidenced by the decline in the U.S. Economic Surprise Index, the Fed is still waiting for clarity on the effects of tariffs on inflation to make monetary policy decision. Even the dot plot represents nothing more than guesses that are subject to change.

 

In other words, the Fed has uttered the three most important words in investing: "I don't know."

 

 

Indeed, investors are facing uncertainty and binary event risk relating to the trade war, monetary policy, and the Israeli-Iran conflict. How can mere mortals like us pretend to forecast the future?

 

In circumstances like these, it's better to say, "I don't know."

 

The full post can be found here. 

 

 

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