Is “performance history” a reliable method to choose investments?

by admin on March 29, 2011

The use of performance history to determine the best investments for the future is referred to as track record investing.

The traditional financial services industry wants you to believe finding funds that did well in the past is a reliable method of indicating which funds will do well in the future.

Really?   Yes—when was the last time your current adviser recommended you buy a mutual fund or security that had a negative track record over the last 3, 5, or 10 years?

The point?   With the right investment strategy and coaching, you can eliminate track record investing from your investing behaviors.

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