Does history repeat itself? I’m sure all the historians must be scratching their heads, biting their nails, and recollecting the zillion times they’ve had this thought. But, c’mon how many times have you assumed that past performance is the base to future performance. How often do you consider the aspect of variation and alternation? I can see all the recruiters hiding under the table.
The financial market lives on the statement, “Past performance is no guarantee of future results”. It’s the disclaimer to every mutual fund advertisement that pops up on your screen every five minutes, literally. Guaranteeing the future based on the past is nothing less than a recipe for disaster.
Why do we enrol ourselves into the recipe for disaster?, even after we are aware of the uncertainty of the outcome. It is the most convenient, but also the least empirical form of prediction. To all the lazy pants out there kindly, laundry.
It’s a century of screening tools, assessments, skills gauging, using the old school past performance theory alone is voluntarily entering the pool of idiocy. Refresh the brain cells and bid farewell to laziness, adopt in methods that are impactful and fruitful.
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