Baron On The Futility Of Forecasting, And Why Inflation Is Higher Than You Think

Billionaire investor Ron Baron has a message for those who are trying to predict how day-to-day news will impact the stock market: Stop.

“Everyone’s trying to predict what’s not predictable,” Baron tells CNBC in the clip below, citing some data showing just how off the mark market forecasters are. He also talks about the relationship between stock prices and gross domestic product, and offers his broad take on the market right now. “Everyone’s worried about whether the market’s expensive or cheap,” he says, “but really … the economy’s doing fine and the stock market’s doing fine.”  In a separate clip, Baron says the government is trying to devalue money because of the country’s huge debt burden. He says he doesn’t believe statistics showing that inflation is running at a 2% or so annual pace. He says he thinks it’s closer to 4%.

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