I have no crystal ball, so take everything I say as simple musings about what is possible, but I think the foreseeable future will present us with the following conditions that will affect our financial decision making:
· Information will be easy to get, true knowledge will not be.
· Changes in policy (or even the anticipation of changes) will affect the business climate.
· Market changes will be faster, steeper, and more subject to overreaction.
· Asset performances may not follow longest-term historical norms.
· Historically divergent asset classes will have moments of high correlation.
So I’m advocating financial consumers do the following:
· Pursue market intelligence and insight, not just data.
· Truly understand the benefit of micromanaging diversification.
· Believe in the benefits of oversight, access, and due diligence.
· Don’t simply “buy and forget”.
· Maintain rigorous discipline.