"Most economic decisions are forward looking. To know whether today is a day for work or for leisure, we need to decide whether tomorrow will be more or less productive than today; in short, we must have an expectation of the future." - Kevin D. Hoover
With my last blog entry I stressed the fact, that when it comes to investing and trading? Absolutely no one can predict the future.
Sort of ...
There is always a benefit to examining the 'other side of the coin', or 'the other side of the argument.
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When it comes to my own view? I would say that if you had to peg me to any particular school? I am probably closer to the 'New Classical Economics' than any other. Although there are still tenants of 'New Classical Economics' that I strongly disagree with. And my opposing thoughts on 'prediction', is probably the easiest way that I can explain the "Lucas Critique".
Neutrality has a wonderful way of seeking out truth ...
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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.