Analysis or forecast

Analysis and forecast are two completely different things altogether. While forecast is about the future, analysis is done of things in the past. And still, we regularly keep hearing about the “Analyst forecast”. Isn’t it strange?

Many forecasts have nothing to do about the future, but are just extrapolation of the past.

Mutual funds know it better when they say, “Past performance may or may not be sustained in future.”

To read more about this, look at the chapter “On Forecasting” in the book “Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget”

#RidingTheRollerCoaster – 93


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