Were your parents obsessed with The Weather Channel growing up?
Yeah, me too. (Although, I’m still not clear on the attraction.)
Watching my mom ‘watch the weather’ taught me some important lessons about investing.
Namely, the climate is predictable, but the weather is not.
San Francisco’s climate is 65* and either sunny or foggy.
I’d bet anything over the next ten years, the average temperature in SF will be 65*
But I couldn’t tell you if this year will be ‘hot and dry’ or ‘normal and wet’.
It’s not just me. NO ONE can.
The best a meteorologist can do is kinda, sorta predict what tomorrow’s weather will be. And they’re still wrong almost as often as they’re right.
If you’re invested correctly, you’re hitching your trailer to the long-term trends – the climate – not the short-term predictions – the weather.
You can watch The Weather Channel all you want, but don’t decide where you want to live based on tomorrow’s weather forecast.
