“Past performance is not indicative of future results.”

Sound familiar?  If you have invested in any regulated investment of any form, you have read or heard this phrase before.  I have to be honest.  Even as a professional advisor, when I read this and explain it to clients there is something about it that gets on my nerves.  Don’t get me wrong, I’m not saying it’s untrue or that I don’t believe it.  We don’t know what the future returns of our investments are going to be.  We don’t know the exact short-term direction of an investment, and if anyone tells you that they do, you should find another advisor because you will be set up for failure.

If I really think about why this phrase annoys me, I think it is because I want to find some certainty with an investment’s outcome. Doesn’t everyone? > SEE MORE

Posted by:

Pete Dixon, CFP®

Partner and Advisor