The Danger in Relying on Market History

We can get some great information from studying the history of markets. I believe the best use of prior market information is to learn how investors/speculators behave/react.

From investor behavior, we can understand how different asset classes tend to move at different times and circumstances.

Unfortunately, many people rely on the history of the stock market to indicate what may happen going forward, and invest based on past events. This may work for a while, until it doesn't. XIV and LJM were obliterated last week because something happened that "had never happened before". That is how they excuse themselves.

Related: Knowledge Management Powers Digital Innovation

Click on the image above to watch the 45 second video below to learn one of my favorite sayings...which will help investors keep a forward looking (not backward) looking mindset when making investment decisions.