In my view, investing is a very complex process compared to most other forms of work in the world. Not only making money from investing, mind you, but the process in itself. So while the belief on the difficulties of deciphering a complex creature like the finance world still remains, new developments are making investing even more complex.
Perhaps it is best to visualize things in this way: at every point in time, there is a range of possible outcomes that could develop in the future. The executives of these financial firms have been assigned with the responsibility to understand all these possible outcomes. They then have to find the optimal approach to pick out the outcome that has the highest probability of happening, and then make decisions according to that outcome.
In other words, the executives of financial firms are building a competitive advantage based on superior knowledge, they identify key trends, what I call inevitabilities, that have a higher-than-average probability of materializing, and then focusing on them.
All this must be done while maintaining the best interests of the clients and shareholders, and not in a way that would harm the society overall. Furthermore, their success does not only depend on the structural issues discussed above, but also depends on the responses from governmental individuals, regulatory agencies and that most important of all, public sentiment. But that’s not all, they also have to manage all this while keeping with the employees’ expectations and do it in a way that maintains a balance and motivates them to continue working as hard.
Readers can read the same facts expressed here and come up with diametrically opposite conclusions. There is nothing definite here it all depends on your point of view. However, I do think that the message should be better communicated with more clear examples and not let these executives’ actions and words be misinterpreted.