Ken Fisher Explains: Why Past Stock Market Performance Doesn't Predict Future Returns

Most investment materials are required to tell investors that “past performance is no guarantee of future returns.” But in this video, Ken Fisher, investor and founder of Fisher Investments, explains that besides being “no guarantee,” recent performance of a stock, a sector or the entire market isn’t even a decent predictor of future performance.
Financial markets, Ken explains, move because of reactions to new information that markets currently don’t understand. These “surprises” are what drives markets in Ken’s view. So rather than looking at the most recent quarter or year of performance history, Ken suggests that an investor’s time would be better spent contemplating what really drives investment performance and looking for factors that markets don’t currently understand, but have the potential to surprise markets.
If you would like to learn more of Ken Fisher’s and Fisher Investments’ thoughts on the current environment and where markets could go from here, visit us at https://www.fisherinvestments.com/en-us.
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