Those who have knowledge don’t predict. Those who predict, don’t have knowledge
In this time of rampant financial speculation and gambling, we should again remind ourselves of the wise words of Lao Tzu, an ancient Chinese philosopher, “Those who have knowledge don’t predict. Those who predict don’t have knowledge.”.
When we say that we should not predict the financial markets, we mean that we should not have assumptions of what is going to happen in the future and base our investment decision according to these assumptions. When we do that, we will not have any contingency plans to deal with what may happen if our assumptions turn out to be wrong. If we listen to our thoughts carefully, we will surely uncover many assumptions that we have made. Often, assumptions are used to substitute gaps in knowledge.
