Risk and uncertainty are characteristic of capitalism
(2009-04-29 17:26:25)
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Risk and uncertainty are characteristic of capitalism
The source of risks is a lack of knowledge, because without sufficient knowledge of the present, you can not accurately predict the future. Diversification can not reduce risks because you do not increase knowledge by diversifying. The only way to reduce risks is to specialize and focus on increasing your knowledge in some areas of the market. When you gain more knowledge, you can reduce risks. When you trust in God and in His perfect will, you have no risks, because He has unlimited knowledge.