If numbers had told us all we need to know then we wouldn’t have come up with words. And now we have the number-guys telling us that numbers are not enough for the most counted and counted upon area of finance.#Finance #AssetManagement
The basic issue:
- Future projections are based on historical data which implies an assumption that the future will follow the patterns of the past. This goes farther away from truth as history seldom repeats itself in the technology driven corporate world.
- Even if the the above assumption was granted, there is simply not enough data to extrapolate!
Read the whole analysis by Bloomberg here.