Rathbone's George Viney on why investors must try to prepare for the future even if they cannot predict it.
Who at the start of the year could have predicted revolution across the Arab world, or a massive earthquake and tsunami in Japan? Dramatic, market-moving events remind us investing always carries a large dose of randomness, which can so often make forecasters look daft. We can rarely predict the future, but we can try and prepare for it. In the same way an insurance underwriter must demand a sensible premium for accepting the risk of you crashing your car, investors must demand adequate compensation for accepting the cashflows of an uncertain future. The bad news is, in many cases, today...
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