Monday, September 12, 2011

Predicting Oil Prices

I haven't had a chance to read this article yet, but don't want to lose it.

This appears to be the bottom line, and something with which I agree:
But while the analysts at Goldman enjoy their success, a careful look at the whole range of price forecasts reveals worrying problems with the whole process. Forecasts appear to be backward-looking, and have little predictive power, even over quite short periods of time. Forecasts react to events rather than anticipate them, limiting their value to longer-term investors and hedgers.


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