I really shouldn’t have to write this article. If you look online there are thousands of similar articles all trying to tell people the same thing. In fact, nearly every single investment presentation in Canada contains some form of the same “Past performance is not indicative of future results”.
Why is it that we have to keep being told over and over again, and yet we still don’t learn our lesson?
First, let’s look directly at what I’m talking about.
You are offered the choice of two investments. Investment A has been declining in value for the past 10 years and is currently worth 70% of what it was worth in 2011. Investment B has been screaming higher over the past 10 years and is currently quadruple the value it was in 2011.