“Unfortunately, one thing we know for certain about financial forecast

“Unfortunately, one thing we know for certain about financial forecasts is that they are almost always wrong.” If the preceeding statement is generally thought to be true, why do we spend so much time and money on financial forecasting?!

What will be an ideal response?

ANSWER

Perhaps one way to address this statement is to quote General Eisenhower: “In preparing for battle I have always found that plans are useless, but planning is indispensable.” We can take this to mean that by developing a plan we know may not work, we have considered other less likely outcomes and how we would react to those. Planning can help us think through situations and to prepare responses to possible outcomes.