When I tell my friends, neighbors, and relatives about my success in the stock market, most of them just roll their eyes. They are not interested in the stock market and just put their savings in the bank.
When I ask them why they don't put any money in the stock market they say: "Past performance is no guarantee of future results." In other words, they believe that just because the stock market may have done well in the last ten years does not mean they would make money going forward. One friend said, "just because you made money in the stock market last year, means nothing, it could crash and likely will never recover." I find this type of thinking is quite common. They believe that past occurrences and trends mean nothing and tomorrow is likely to be completely different and unpredictable so it is best to play it safe.
My argument to them is history is a great guide to the future. While not a 100% guarantee, it is highly likely that smart hardworking people running and working at some of the most successful enterprises in the history of mankind will continue to develop new technology, new products, and ideas. This will use capitalism to help grow organizations year after year which will increase revenue and profits, which will increase stock prices just like the last 100 years.
Who is right, my friends who won't invest because they feel that past performance is no guarantee of future results, or me that believes history is a great indicator of the future results?
Submitted July 27, 2021 at 05:02AM by rarelywearamask https://ift.tt/2ULt2dm
