The Importance of History

Although all disclosure statements from investment advisory firms are required to state that "past performance does not guarantee future results," studying the long-term past can better characterize both the risks and returns of asset classes and empower individuals to make better choices. Market history demonstrates the enduring nature of capitalism and demonstrates the benefits of being a long-term investor. The use of long-term historical data enables investors to build an asset allocation that meets their own risk capacity and equips them with the knowledge to withstand short-term volatility. For these important reasons, investors should rely on large sets of historical data when building an investment portfolio.

Step 9DisclosureCapitalismPast PerformanceHistorical DataRisk CapacityVolatility