We can all agree that not everything in life is predictable. Life is full of surprises, some of the pleasant, and some of them not.
It’s been said that a confused mind doesn’t buy. That’s particularly true in the world of investing. Investors seek clarity. Things that are too complicated, have too many variables, or have large unknowns are off the table.
Investors are a special breed. Professional investors are relying upon their money working for them. Professional investors truly attempt to quantify what their money will do.
Investors hate uncertainty. Anywhere you see uncertainty, you see falling prices. What will happen in the UK with Brexit is uncertain. Businesses don’t know if they will fall under UK rules, or European Union rules. They don’t know whether they will need to relocate in order to do business in Europe. They don’t know whether the movement of goods between Ireland and Northern Ireland will require customs and excise control. The movement of people and goods in Ireland was free, and now it could become a divided island once more. This is reflected in the falling price of the Pound sterling. It’s reflected in the falling price of real estate in London.
There are so many examples. How can you bring certainty, or at least a boundary to the uncertainty?