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You can’t , and you don’t need to.

Minimising the risk from this uncertainty will generally mean employing diverse approaches.

One name for this is hedging. On this site, hedging means splitting money across all the available ideas which stand up to scrutiny. It doesn’t simply mean going short as well as long.

If we can’t predict which of two things is most likely, we’ll put some money on both outcomes.

Sitting back and doing nothing is not an option.


Category: Lessons and Rules

← How can you know what will happen in the future?

Mike Rawson

Mike is the owner of 7 Circles, and a private investor living in London. He has been managing his own money for 35 years, with some success.