No, you cannot definitively predict the future of financial markets, especially in the short term. However, you can project future outcomes in terms of their probability. These forecasts permit you to be better prepared for possible risks. A Monte Carlo simulation permits you to model real-life systems including the probability (i.e. the odds) of a variety of possible outcomes given specific assumptions about future conditions (i.e. constraints). Continue reading Investing for Retirement: Predicting the Future