Past Results
I thought that it goes without saying that past results is no indication of future results. But, as is too often the case, I am disappointed and wrong.
In fact, a much worse “analysis” in the WSJ made me go nuts today. The “Act One” column asked financial professionals what people in their 20s and 30s should do with $2500. Normally, I skim pass such articles, but I found myself, for some crazy reason, skipping instead to the end of the article.
At the end of the article, they compare what would have happened if you would have “invested” the money in certain specific investments. Unreal! So the “best” investment is the one that already gave good returns. Wouldn’t it be nice if we could all invest like Marty McFly in Back to the Future!
Not only is the article apparently advocating using past results as a proxy, but it also gives credit for past returns. What a wonderful world it would be…
