Short term performance stats say little about long term returns, and here is why


#1

Originally published at: http://whichinvestmenttrust.com/short-term-performance-stats-say-little-about-long-term-returns-and-here-is-why/
Equity investing is for the long term; at least ten years and preferably longer. That is far too long for many commentators and observers to wait before remarking and attempting to analyse performance and determine why a portfolio has under or outperformed a particular benchmark. Leaving aside the issue of how much risk a portfolio…


#2

Because the newspapers only seem to report on the stock market when their is a crash it makes ordinary folk more wary of it than they need to be. they don’t understand how quickly the market can rebound so I agree with the premise of @robert_davies article, investors just don’t get how little significance you should pay to the short term numbers.