Financial Projections: Everything You Need To Know

Good Financial Management Pays Off

For politicians as well as for companies. But at some point too much bad news and scare don’t go down so well. Especially if you are associated with massive restrictions on freedom. This can also be clearly established at the moment.

Financial Projections

Predictability Of The Future

Predictability of the future and stock market forecasts. The predictability of the world is overestimated. People think that they could predict things that are unpredictable. Regardless of whether it is about the next stock market crash or the pandemic, these events cannot be predicted. The pandemic is currently showing us the limits of predictability very clearly. A customer recently said that maybe a little humility would do us good again.

The Difference: Risk And Uncertainty

The distinction between risk and uncertainty. Only known risks can be calculated — uncertainty cannot. The probability of winning at financial projections can be calculated precisely. However, the development of share prices or the exchange rates of different currencies cannot be foreseen.

This Is How You Protect Yourself Against Financial Forecasts

There are effective reasons to protect against forecast traps. It is important that you keep the risks in mind. When we advise clients on investing, the possible risks always play a major role. Even if the market has been going up for years, it can go down at any time. The other way around.

Put Your Own Risk Perception

There are also risks that lie outside of personal perception. That includes inflation. It is important that you know what inflation is doing with your money. How the value shrinks if you leave it in the overnight money account or savings book.

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