I was speaking to a holy man yesterday and mentioned this constant battle I have trying to find absolute truth in all that I do, the main context of my question related to the need for truth when understanding the markets. He said something that I think was very profound. He said, “Michael sometimes circumstances have multiple truths.” What he means is that you have to take the prevailing circumstances into account when considering what is truth.
What I read into this statement is that I need to take the current environment into account. For instance when we consider the current environment of quantitative easing in the US it is easy to believe that this automatically means inflation or weakening of the dollar; an absolute truth. However, this is not necessarily the truth, because there are other countries that may be embarking on bigger quantitative easing programs, e.g. Japan and the ECB, an example of a relative truth.
The important point to take into consideration is that not all views are correct, this is not a cop-out philosophy it requires far more knowledge and depth of understanding to be able to see the multiple truth’s. In many instances the cop-out is to see the world purely in black and white. This is something I hope to develop within myself this coming year.