Graham Bentley: Profs no better than journos in forecasting the future

Mostly they'll be wrong

clock • 4 min read

A New Year is the catalyst for some of us credited with the faintest whiff of investment nous to pontificate on a 2016 stock market outlook. But Graham Bentley believes that given our track record, we really shouldn't bother...

At the various investment committees I will attend, my peers will sagely refer to charts and data, opining on the investment year ahead. Mostly they'll be wrong, of course. We believe that more information leads to more accurate forecasts, and hence better decisions.The evidence, however suggests ‘experts' are overconfident regarding their ability to forecast. Research (1) demonstrates that experts' confidence in their forecasting rises in line with the amount of information available, and yet the accuracy falls. Predictions rely on information that is for the most part "noise". ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Darius McDermott: Asia's broadening investment story

Darius McDermott: Asia's broadening investment story

Fund managers have a dilemma

Darius McDermott
clock 21 October 2026 • 5 min read
China's historic move away from coal shows why investors need to keep digging

China's historic move away from coal shows why investors need to keep digging

'A key challenge for investors is to identify the pockets of genuine innovation'

Xin-Yao Ng
clock 19 October 2026 • 4 min read
Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Investors yet to stuff ISA allowances as government plays down spectacle despite 'tough' Budget

Platform activity stable

Jack Roach
clock 19 October 2026 • 4 min read