Investors spend too much time thinking about macro-level events and how they impact investing. Macro events are the big-picture factors that drive the global economy. They include the oil price, currency prices, bond yields, the state of economies, inflation rates price of gold among many others. But even the brightest minds in finance can not predict the future because too many confounding factors make it hard to make correct call. Every sophisticated call is just a guess.
So, today’s predictions are next to worthless. A single unexpected future event could derail any projection. Therefore follow Charlie Munger’s advice: Ignore the macro numbers! Because you waste too much time for no result.
Sven Franssen