| It is probably the most ubiquitous disclosure one comes across in the investing world: “Past performance is no guarantee of future results.” This simple statement figures prominently in every mutual fund prospectus, yet experts agree the lesson is remarkably hard to instill in investors—including participants in defined contribution (DC) retirement plans. What is more, once the lesson is learned, it is easily ignored during long bull markets. According to Brad McMillan, who is chief investment officer (CIO) for Commonwealth Financial Network in Boston, the recently passed 10-year anniversary of the lowest point in the Great Recession makes a timely teaching opportunity. Reflecting on the aftermath of the September 2008 Lehman Brothers collapse, he says, is valuable for bringing perspective to how one makes fund choices and considers performance, today.Read more > |
