I’m getting ready to drive home from our family trip to Utah. Snow is everywhere and I know I need to concentrate on the road ahead.
“Keep your eyes on the road.”
That’s what we all heard in driver’s education, but as any experienced driver knows, you need to check your rear-view mirror to see what’s going on behind you.
However, the driver who insists on trying to drive while ONLY looking in the rear-view mirror is an accident waiting to happen.
The same rule applies for investing.
Past investment performance has little predictive value on what will happen in the future, yet we rely on it time and again to make our investing decisions.
Without a doubt this is the biggest and most common mistake investors make – and it’s overwhelmingly detrimental to their returns and performance.
Whether it’s trying to decide the funds they choose in their 401(k) or picking those funds from all the “fantastic software” that the online investing firms offer, it’s something everyone needs to eliminate.
To learn more, start right here and download my FREE Investors Awareness Guide right from our website.
About Michael Stokes