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The Memo by Howard Marks cover image

The Insight: Conversations – Volatility Ahead? Featuring Howard Marks, Armen Panossian, and David Rosenberg

The Memo by Howard Marks

NOTE

The Danger of Believing You Know the Future

The preoccupation with trying to know the future introduces uncertainty. It is argued that the future is always unknowable, and believing otherwise leads to precarious ground. The speaker posits that when people think they know what will happen, they are often wrong, and true uncertainty indicates the right perception. The conviction of knowing the future is deemed more perilous than acknowledging uncertainty. This belief is supported by the idea that being certain about incorrect knowledge is more problematic than not knowing at all, leading to bubbles and crashes. Doubt is portrayed as a healthier stance as it tends to produce more balanced outcomes.

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