TOOLS THAT DON’T WORK

Investors often look to financial advisors for their perceived ability to forecast the economy, time the market, or predict future relative performance of different managers or strategies.  But none of these efforts work well or can be done consistently, even by professionals.

You don’t have to take my word for it, several smart people have already weighed in on these topics…

On economic forecasting:

“The only function of economic forecasting is to make astrology look respectable.”

–John Kenneth Galbraith

On market timing:

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in the corrections themselves.”

–Peter Lynch

Performance chasing:

“Past performance is not a guarantee of future results.”

–mandatory disclosure on all investment communications

A better investment experience begins when you stop believing in and attempting to employ tools that don’t work.

-EN