An interesting read from Morningstar in response to Brexit, the latest financial crisis. The article references “The Big Short” and says “the biggest of the big shorts in 2007, John Paulson, was recently forced to invest some of those profits back into his ailing hedge funds.’’ Also, another quote I like: “some investment managers … talked themselves and observers into believing they knew it all along.” To not know that you do not know, that is dangerous.

The article suggests that history and reason tell us an investment manager can’t make the right call every time. “Every crisis is different” roughly translates into “the future is unknowable.” One comment at the article end included a quote:

“It is difficult to make predictions, especially about the future.”

My response to Brexit? I’m at peace with my 403b auto-invest happening with this next paycheck. If the market stays low, I buy low. If the market goes up, my current holdings go up.

-Dr. Moore

http://news.morningstar.com/articlenet/article.aspx?id=758088