Lessons from the past for investing today


In January, The Wall Street Journal published an article Six Lessons for Investors by John C. Bogle. Even though the article is over a month old, the content is still timely-especially given the recent release of an annual poll by TD Waterhouse that shows Canadians are losing confidence in their investment savvy. The six lessons won’t magically bring back investor confidence, but it’s not a bad foundation to build on.

The six lessons for investors discussed in the article are:

  1. Beware of market forecasts, even by experts
  2. Never underrate the importance of asset allocation
  3. Mutual funds with superior performance records often falter
  4. Owning the market remains the strategy of choice
  5. Look before you leap into alternative asset classes
  6. Beware of financial innovation

Of  course, how these lessons apply to you will depend on your personal situation.