When the market has been down, investor sentiment tends to crater. As Chiefs fans, we’re no different. It’s difficult to watch the team lose and still remain optimistic that they’ll win the next one.
Investors tend to look backward at recent results and assume that is the new trend. But financial advisors are taught early on that “past performance is not indicative of future results.” It’s a characteristic of the financial markets that there is a certain amount of randomness in the stock market. The NFL version of the random walk theory is “any given Sunday.