With the Brexit outcome, the Trump victory, and the Chicago Cubs winning the World Series after 108 years, the art of forecasting is the year’s biggest loser!

With the Brexit outcome, the Trump victory, and the Chicago Cubs winning the World Series after 108 years, the art of forecasting is the year’s biggest loser!
2016’s events are an acute reminder that anyone’s ability to consistently predict future events is limited.
A regime shift, in ecology, is defined as an abrupt and significant change in the behaviour and/or structure of a system.
As the compensation for accepting risk is at record lows, it is time to think harder about managing risk rather than chasing return.
With central banks distorting the time value of money through unconventional policies, investors can easily be lulled into lax balance sheet standards.
We believe a defensive posture fixated on minimizing risk will equate to a positive real rate of return over a long time horizon.