Coping With An Uncertain World

Infrequently it pays to have CNBC running in the background. Today was one of those rare times when I picked up something useful.

Ken Moelis, a former UBS investment banker and now the proprietor of his own shop, was doing an interview with one of the money honeys and offered some thoughts that run counter to the absolute certainty most of the pundits and guests proffer. Basically, he said that the current environment is so uncertain that it is foolish to prepare yourself or your business for anything other than ambiguity.

The point he was making is that the rules of the game are in such a state of flux that you cannot predict with any confidence how things will turn out. The roles that government, business and consumers play are being redefined as are the interactions among the three, hence ┬áthere isn’t enough information to make long-term decisions or commitments. His advice — bullet proof your balance sheet, get liquid and don’t try and do transformative transactions.

There’s a lot to be said for his outlook.

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