FNArena’s Weekly Insights – October 28 2019
I am still amazed, every single time, but with the year 2020 but a whisker away, there are still investors who use backward looking data as the main support source for their investment strategy and portfolio. On my assessment, these investors are at risk of significant disappointment in the year ahead.
Firstly, before I explain what I see as one of the key sources for potential disappointment from here onwards, I’d like to recount a recent anecdote because it’s not just inexperienced amateur investors who rely on (false) security from the past.
Two months ago I upset a rather well-known economist employed by a large financial institution for putting up a table online with implied dividend yields that were significantly different from what my forward looking indicators were suggesting as the most plausible outcome.