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Sam Instone

By: Sam Instone

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March 13th, 2019

This 3-minute video explains why history rarely repeats itself in investing (although the media may pull the wool over your eyes)

Investment | Financial Planning

In the markets, history rarely repeats itself.

Past performance is not a true indicator of future returns.

(Although the media and public may say otherwise).

This is the truth you need to hear.

When you look at past performance, you tend to look at what’s done well.

It’s natural but can be very misleading.

According to Global Director of Manager Research at Morningstar, Jeffrey Ptak, there are other factors you should be paying attention to.

Which, he says, give a better view of performance.

Watch the video for more information.

Whatever others say – you cannot time the market.

You shouldn’t pay attention to the hype in the news or word on the street as no one can predict how markets will do.

Anyone trying to outperform them, will find their efforts in vain…

It’s not worth the stress, expense and time.

Choose, instead, to invest in low-cost index funds.

And opt for evidence-based investing.

It’s far simpler and more rewarding.

It also promises a much better chance of success.

Have we convinced you?

If not, here’s more evidence (click the titles to view):

1. Stop chasing past performance: expert advice for your investment success [Video]

Investors over-estimate the importance of skill and underestimate the role of chance in investment returns.

They assume that managers who’ve performed well were skilful.

When, in fact, they simply outperformed because they took on more risk.

An introduction to investment risk

Before you’re tempted to buy into a consistent star performer (fund or manager)…

Watch this.

 

2. The damning evidence on active fund performance [Video]

Only 1% of active funds outperform in the long term.

So 99% of fund managers deliver poor returns for investors, considering the fees charged.

There’s a less popular yet far simpler way to produce better results.

Learn more here.

 

3. Do index funds perform better during a bear market? (5 formidable facts that prove passive investors will always win) [Blog]

Whether a bear or bull market, one investment approach always wins.

Index investing.

Why, then, do we hear conflicting arguments from fund managers, pundits and the media?

American writer Upton Sinclair puts it brilliantly:

‘It is difficult to get a man to understand something, when his salary depends on his not understanding it.’

Read more here.

For a simpler, smarter and more rewarding way to invest, get in touch.

What others call ‘boring’ – we call liberating.

More patience, discipline and time in the markets means more freedom to enjoy life.

With less stress and anxiety…

And better returns at the end of it all.

Doesn’t this sound like a better way to invest?

Book a discovery call today

About Sam Instone

Sam Instone, Director at AES International, is passionate about positive change and ensuring international investors get better results.

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