Technology and big data have allowed us to minimize risk in our lives, but nasty surprises like pandemics and war show us that flexibility is the real key.
These are uncertain times, but we’ve never lived with less risk. That may sound crazy coming out of a pandemic that disrupted our lives in uncountable ways — and now we may be on the brink of World War III. But there is a big difference between risk and uncertainty, and each requires different coping strategies. Risk can be managed with insurance or hedging; Uncertainty demands flexibility.
That's important to know when making big life decisions like buying a house, changing jobs, having a baby, retiring or even adjusting your portfolio.
Continue reading the entire piece here at Bloomberg Opinion (paywall)
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Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
This piece originally appeared in Bloomberg Opinion