Is past investment success a guide to future success?

We are told that past performance isn’t a useful guide to future performance - it’s part of every product or presentation we send to clients. This is often true. But not always.

But when we start to study financial markets we begin to understand that it’s more complicated than just a yes or no answer. Financial markets are complex. That doesn’t necessarily mean complicated – very often we over complicate things. But they are complex in the sense that for every seemingly simple finance question, there is more than one answer. And sometime this can be frustrating. Is volatility a good measure of investment risk? Is passive investing better than active management. Is past success a guide to future success? These are seemingly simple questions with obvious answers. Let’s see if you are right!

This is a programme taster lecture for the (NFQ Level 9) Graduate Diploma in Financial Planning (6 modules with 60 ECTS) and the Professional Diploma in Financial Planning (3 modules with 30 ECTS).

These programmes are designed for those satisfying the Minimum Competency Code (MCC) of the Financial Regulator who wish to progress their knowledge and skills in the specific area of financial planning and provide a gateway to the prestigious Certified Financial Planner (CFP®), the world’s most widely respected financial planning designation.