Greg Davies: Three ways stochastic tools are less use than you think
The cost of complexity
Greg Davies: "With its increasing focus on stochastic approaches, cashflow modelling has evolved into an imitation of something useful."
A cashflow process is not an end in itself, argues Greg Davies, as he runs through a number of reasons why, judged against what they are trying to achieve, stochastic tools may not add much value in financial planning
Cashflow modelling has long been at the core of financial planning. It is where diagnosis of the past and predictions of the future come together to prescribe actions for the present. In effect, it is...
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