Uncertainty means Profits

I constantly hear that "The Street hates uncertainty". This has always bothered me, maybe because I have never been to Wall and Broad or even New York for that matter. However, it is a fallacy to think anything is certain. Politicians, natural disasters, human emotion, trends, fads, sentiment, which one of these can be predicted with any accuracy. I was listen to a popular CNBC show when it was announced BP was trying to bring to market some new debt issues. One panel member mentioned they would not purchase the debt if maturities were longer than 9 months. Then they turned around and mentioned a company they liked as a long term buy for 5 to 10 years. We are all delusional, trying to predict that anyone or anything will continually be profitable 5 to 10 years. So, I went through all this ranting to mention my new strategy. Step one, take cheap directional bets and step two is to diversify. The risk reward ratio has to be at least 3 to 1, because I plan to be wrong a great deal. I will check back to give an update on my status.