Past Performance is No Guarantee of… Past Performance

“Wall Street likes to tout returns it didn’t actually produce. You need to ask some important follow up questions” Jason Zweig writes in his WSJ article ‘When Past Performance Doesn’t Even Predict Past Performance’. Today, Evan and Paul talk about what backtesting is and why Zweig is right to call it a “dirty trick that is central to Wall Street’s marketing playbook.” Later in the episode, the advisors talk about how lenders regularly send credit scores to consumers as a way to encourage people on their financial journey, but these soft credit checks are really just grooming people to borrow more money.   

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