Invest for the future not the past

All / 20.09.2017

Investing bears no resemblance to gambling and, unfortunately past ‘form’ seldom provides an indication of future performance.

Many investors are tempted to look at the best performing sector over the past year and then switch their investments accordingly. Beware this can be a recipe for disaster.

In many cases, last year’s poor performer can turn out to be this year’s best – for example, International shares in 2015/16 averaged -2.7% but in 2016/17 became the star performer at 18.9%.

Or vice versa – Australian listed property achieved an average return of 24.6% in 2015/16 but proved to be the worst performing sector in 2016/17 averaging -6.3%. Investors who changed their portfolios to chase those high returns from the previous year would have been seriously hurt.

The simple answer to this lack of form is to establish a portfolio with a mixture of the various investment assets that suits your own objectives and risk profile. Staying with this formula over the long term will invariably provide the most satisfactory outcome, irrespective of the performance of individual assets.


Contact us on 02 6621 8544 if you would like to review your portfolio to ensure it’s continuing to meet your needs.


Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.


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